How to use the Compound Interest Calculator
- Fill in Principal, Interest rate, Time and Compounding. Type a number or drag the slider.
- The result appears straight away and changes as you type. There is no button to press.
- Use the worked example, table and formula below to check the result or compare other values.
Worked example
₹1 lakh at 10% a year compounded yearly becomes ₹1,21,000 in 2 years. The interest is ₹21,000, which is ₹1,000 more than simple interest on the same amount.
Quick answers
- What does ₹1 lakh become at 5% compound interest in 5 years?₹1 lakh at 5% a year, compounded yearly, becomes ₹1,27,628 in 5 years.
- What does ₹1 lakh become at 8% compound interest in 5 years?₹1 lakh at 8% a year, compounded yearly, becomes ₹1,46,933 in 5 years.
- What does ₹1 lakh become at 10% compound interest in 5 years?₹1 lakh at 10% a year, compounded yearly, becomes ₹1,61,051 in 5 years.
- What does ₹1 lakh become at 12% compound interest in 5 years?₹1 lakh at 12% a year, compounded yearly, becomes ₹1,76,234 in 5 years.
- What does ₹1 lakh become at 15% compound interest in 5 years?₹1 lakh at 15% a year, compounded yearly, becomes ₹2,01,136 in 5 years.
Compound interest table for ₹1 lakh
Total amount on ₹1 lakh with interest compounded yearly.
| Interest rate | 1 year | 2 years | 3 years | 5 years | 10 years |
|---|---|---|---|---|---|
| 5% | ₹1,05,000 | ₹1,10,250 | ₹1,15,763 | ₹1,27,628 | ₹1,62,889 |
| 8% | ₹1,08,000 | ₹1,16,640 | ₹1,25,971 | ₹1,46,933 | ₹2,15,892 |
| 10% | ₹1,10,000 | ₹1,21,000 | ₹1,33,100 | ₹1,61,051 | ₹2,59,374 |
| 12% | ₹1,12,000 | ₹1,25,440 | ₹1,40,493 | ₹1,76,234 | ₹3,10,585 |
| 15% | ₹1,15,000 | ₹1,32,250 | ₹1,52,087 | ₹2,01,136 | ₹4,04,556 |
How it is calculated
A = P × (1 + r ÷ n)^(n × t)
P is the principal, r is the yearly rate as a decimal, n is the number of times interest is compounded each year and t is the time in years. The more often interest is compounded, the larger the final amount.
Good to know
- Start early: time is the biggest factor in compounding.
- More frequent compounding helps, but the rate and the time matter far more.
- Compounding works against you on debt such as unpaid credit card balances.
Common questions
What is compounding frequency?
It is how often interest is added to the balance. Monthly compounding adds interest 12 times a year, quarterly 4 times, and so on.
Why does compound interest grow faster?
Because each time interest is added, the next round of interest is calculated on a bigger balance. Over long periods this effect becomes very large.
What is the rule of 72?
Divide 72 by the yearly rate to estimate the years needed to double your money. At 8% it takes about 9 years.
What is the effective annual rate?
It is the true yearly rate after compounding within the year. 10% compounded quarterly is an effective rate of about 10.38%.
Formula and text last reviewed in October 2026. Results are estimates, not financial advice.