Compound Interest Calculator

Total Accrued Amount:


at 8% interest rate for 14 years



Interest Earned:


All You Need to Know About Compound Interest Calculator


What is compound interest?

The concept of compound interest, or compound interest meaning, is that accumulated interest is added back into your principal, with future interest calculations being made on both the original principal and the already-accrued interest.

When you combine the power of interest compounding with regular investing over a sustained period, you get a highly effective growth strategy for increasing the long-term value of your savings or investments.

What Is a compound interest calculator?

A compound interest calculator or compound calculator is an easy online tool that helps you to calculate simple interest. It has an interface where you can enter a few details to get compound interest on the principal amount daily, monthly, or yearly. Compound interest starts when your investment earns interest. At this point, the interest is added to the initial investment amount. Then, when it gains interest again, it will determine the newly acquired interest by calculating the initial capital invested and the earned interest.

How does a compound interest calculator work?

Using the compound interest formula calculator makes it easy to understand how your investments grow. To calculate compound interest rate, you first need to know the following:

    1. Your principal investment amount

    2. The rate of interest offered

    3. The number of times your interest is compounded per year

    4. The years you want to stay invested enter this data to get your final investment value. You can also add regular deposits or withdrawals within your calculation to see how they affect the future value.

What is the formula of Compound Interest?

Compound interest is computed by using the compound interest formula:

A = P(1+r/n)^nt. For Compounding yearly, multiply the initial balance by one plus your yearly interest rate raised to the power of the number of periods (years).
This gives a combined figure for principal and compound interest examples. Let's understand the compound interest formula

A = P(1+r/n)^nt where

A = the future value of the investment

P = the principal balance

r = the annual interest rate (decimal) 

n = number of times interest is compounded per year

t = the Time in years

^ = ... to the power of ... 

How to Use Kotak Mahindra Bank Compound Interest Calculator?

Kotak Mahindra Bank Compound Interest formula calculator or CI calculator is a super easy customer-friendly tool.


With this CI calculator, you can calculate the compound interest rate you earn on your savings and investments over years and months based on a chosen number of compounds per year.

In the case of savings, the interest is paid quarterly, i.e. four times annually. Compound interest paid quarterly results in investment made by reinvesting the interest earned on principal and compounding every three months. This adds up to the overall investment value. Also, the interest gained is paid out to investors every three months.

Let's illustrate this with an example.

Rs. 10,000 is invested in a Savings account for ten years. The interest is compounded every quarter, which means four times a year. Therefore, the interest given by the bank is 5%. Therefore, to determine the nominal interest rate, one needs to divide five by 100, which equals 0.05. Now, we look at the formula and change the letters with the relevant numbers.

Calculating the Total Value of the Deposit

P (1+ i/n)nt

P = principal invested.

i = Nominal Rate of Interest.

n = Compounding Frequency or number of Compounding periods in a year.

t = Time, meaning the duration the interest is applicable, generally in years.

Calculation: 10,000(1+0.05/4)4x10 = 16436.1946349

We can round this total to Rs. 16,436.19. So, the compound interest earned after ten years is Rs. 6,436.19.

Compound Interest Rate Formula (excluding savings) with Example

Let's use the compound interest example of Rs 1,000 at 0.4% daily for 365 days.

P = 1000

r = 0.4/100 = 0.004

t = 365

Let's put these into our formula: A = P(1+r)^t

     A = 1000(1+0.004)^365

     A = 1000 * 4.2934377972993

     A = 4293.4377972993

We deduct the principal amount (1000) from the future value to get the total interest. This gives us an interest of Rs 3293.44

What are the benefits of using a Compound Interest calculator online?

The benefits of using a CI Calculator to calculate compound interest rates are as follows:

1. Simple to Use and Comprehend. 

A compound interest calculator enables you to easily calculate the compound interest on your investment.

2. Facilitates Financial Decision-Making

3. Offer Reliable Results

4. Educate You on Difficult Financial Concepts

A compound interest calculator can help you understand how compound interest can accelerate your money's growth more than simple interest. So it is also helpful in guiding you about financial decisions.

5. Provide Variability.

You may use the calculator to check multiple situations. You must tweak the interest rates, investment tenure and investment amount to compare the return from various investments.

Simple Interest v/s Compound Interest

The primary difference between simple interest and compound interest is in the interest amount.

● Simple interest is calculated on the principal amount or loan amount. In contrast, compound interest is calculated based on the principal amount and the interest gained for a certain period or previous period.

● The interest earned is lower with simple interest than with compound interest.

● Simple interest formula (P*R*T)/100 

● Compound interest formula (P * {1+(R/n)}N) – P)