Standard Compound Interest Calculator
Simple compound interest formula for quick calculations. Use this for standard investment scenarios without additional contributions.
Standard Compound Interest Calculator
Result
How it works
Formula Used
A = P(1 + r/100)^t A = amount, P = principal, r = rate, t = time in years
Smart Tips
- No additional contributions; one-time investment
- Useful for one-off investments like prizes or bonuses
- Compare with simple interest: SI = P×R×T/100
Best Used For
Calculate lumpsum investment growth, inheritance planning
FAQs
What's the difference between simple and compound interest?
Simple: interest only on principal. Compound: interest on principal + accumulated interest. Compound is always higher. ₹1L at 8% for 5 years: Simple = ₹1.4L, Compound = ₹1.47L. Difference grows with time.
Should I reinvest interest or withdraw it?
Reinvest for compound growth. If you withdraw interest yearly, you get simple interest benefit. Reinvestment is especially powerful for long terms (10+ years). The longer you stay invested, the more compound interest magic happens.
Can I use this for mutual fund investments?
Yes, if it's a lumpsum (one-time investment). If you're adding money regularly (SIP), use the SIP calculator instead. For dividends—if reinvested, they compound automatically in most funds.
How long should I invest to see compound interest magic?
It starts working immediately but becomes obvious after 10+ years. Rule of 72: Divide 72 by interest rate to find doubling time. At 8% interest, money doubles in 9 years. At 12%, in 6 years. Longer = more powerful.
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