FD Calculator
Estimate fixed deposit maturity amount and interest earned.
UseBanking
Compound Interest Calculator
Calculate compound interest with yearly, half-yearly, quarterly, or monthly compounding. Includes tax impact, CA notes, ad-ready layout, and a full period breakup table.
Step 1
8% p.a.Compound interest details
CA view: interest is usually taxable at slab rate unless a specific exemption applies. TDS is only advance tax, not the final tax liability.
Step 2
7.2% post-tax yieldBanking estimate
Maturity amount₹1,41,571Estimated amount after tax impact on interest.
Gross interest₹46,190Before personal tax.
Estimated tax₹4,619Based on 10% tax rate.
Principal₹1,00,000Original principal amount.
Step 3
₹1.42 LInterest breakup
CA inputs
CompoundingFinance notes
Tax check₹4,619Interest income generally goes under income from other sources and is taxed at slab rate.
Liquidity checkLock-in mattersPremature closure, missed RD payments, and bank penalties can reduce final returns.
Effective yield7.2%Annualized result after estimated tax.
Breakup table
5 rowsYearly compound interest breakup
Shows how interest compounds over the selected tenure and how tax can reduce the effective result.
| Period | Opening | Fresh Principal | Interest | Tax | Closing |
|---|---|---|---|---|---|
| Year 1 | ₹1 L | ₹1 L | ₹8,000 | ₹800 | ₹1.07 L |
| Year 2 | ₹1.07 L | ₹0 | ₹8,576 | ₹858 | ₹1.15 L |
| Year 3 | ₹1.15 L | ₹0 | ₹9,193 | ₹919 | ₹1.23 L |
| Year 4 | ₹1.23 L | ₹0 | ₹9,855 | ₹986 | ₹1.32 L |
| Year 5 | ₹1.32 L | ₹0 | ₹10,565 | ₹1,056 | ₹1.42 L |
Compound Interest Calculator for Indian banking decisions
Compound interest pays interest on both the principal and previously earned interest, which is why long periods matter far more than small rate differences.
More frequent compounding raises the effective yield slightly: 8% compounded quarterly is an effective 8.24% per year. Banks quote the nominal rate, so use the effective yield to compare products fairly.
How to use this result
Compare the gross return with the post-tax amount, because bank interest is usually taxable. Also compare the rate with inflation before deciding whether the product is suitable for short-term safety or long-term wealth creation.
Compound Interest Calculator FAQs
What is the compound interest formula?
A = P × (1 + r/n)^(n×t), where P is principal, r is the annual rate, n is compounding frequency per year, and t is time in years. Compound interest is A minus P.
What is the rule of 72?
Divide 72 by the annual return to estimate doubling time. At 8%, money doubles in roughly 9 years; at 12%, in roughly 6 years.
Which frequency do Indian banks use?
Most fixed deposits compound quarterly. Savings account interest is calculated daily and credited quarterly. PPF compounds yearly.