# Compound Interest Calculator

Enter the principal, rate, time and how often interest is compounded to find the total amount and the interest earned.

Live calculator: https://calc.softool.in/compound-interest-calculator

## 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%.

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Source: https://calc.softool.in/compound-interest-calculator
Last reviewed: October 2026. Results are estimates, not financial advice.