Compound Interest Calculator: Formula, Daily, Monthly & Yearly Calculation Online
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Compound Interest Calculator

Total Accrued Amount:


at 8% interest rate for 14 years



Interest Earned:


What is a Compound Interest Calculator?

A compound interest calculator is a tool that helps you calculate the compound interest on your amount invested. All you need to do is enter the initial principal amount, the interest rate, and the duration. It shows you the total amount you will have in the future.

Compound interest is the interest on a savings account. It is calculated on the initial amount (the principal) and the accumulated interest from previous periods. This makes your money multiply faster. In this sequence, evaluating the functioning to invest smartly is essential. Unlike previous times, now you can calculate through a digital tool.

Kotak Mahindra Bank's compound interest calculator online does the math for you. It uses a compound interest formula to calculate how much your money will grow.

How Does the Compound Interest Calculator Work?

This tool evaluates how much your money will grow over time. It uses the compound interest formula to calculate your growth. The CI calculator can find the total accumulated amount by following easy steps.

The compound interest calculator online uses principal and interest amounts and the total duration to determine the growth.

The compounding interest is impacted by two factors - rate of return and duration.

  • Rate of return: The compound interest is positively influenced by the rate of return. Higher interest rates mean you can earn more sum at the end of your duration.
  • The investment period: The investment period also influences the compound interest. If the duration is longer, there will be more compounding. This results in increasing the total interest earned.

Kotak Mahindra Bank's compound interest calculator considers these factors to determine your growth.

What is the Compound Interest Formula? Calculation with Example

Compound interest is a method of calculating interest on savings or investment where the interest earned is added to the principal amount, and then interest is earned on both the principal and the accumulated interest. This can result in significantly higher earnings over time than simple interest, which only earns interest on the principal amount.

The compound interest formula is:

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


  • A is the future value of the investment
  • P is the principal amount invested
  • r is the annual interest rate
  • n is the number of times interest is compounded per year
  • t is the number of years the money is invested for


Example for Compound Interest Calculation

Let's say you invest Rs.1,000 at an annual interest rate of 5%. You plan to leave your investment for 10 years, and the interest is compounded annually.

Using the compound interest formula, we can calculate the future value of your investment as follows:

A = 1000(1 + 0.05/1)^(1*10)

A = 1000(1.05)^10

A = 1628.89

This means that after 10 years, your investment will be worth Rs.1,628.89.

Compound Interest Calculator Online

There are many compound interest calculators available online that can help you calculate the future value of your investment. These calculators can also be used to compare different investment options.

Example for Compound Interest Calculation

Year Principal Interest Earned Total
1 Rs.1,000 Rs.50 Rs.1,050
2 Rs.1,050 Rs.52.50 Rs.1,102.50
3 Rs.1,102.50 Rs.55.13 Rs.1,157.63
4 Rs.1,157.63 Rs.57.88 Rs.1,215.51
5 Rs.1,215.51 Rs.60.78 Rs.1,276.29
6 Rs.1,276.29 Rs.63.81 Rs.1,339.10
7 Rs.1,339.10 Rs.66.96 Rs.1,406.06
8 Rs.1,406.06 Rs.70.30 Rs.1,476.36
9 Rs.1,476.36 Rs.73.82 Rs.1,550.18
10 Rs.1,550.18 Rs.77.51 Rs.1,627.69


As you can see, the amount of interest earned increases each year, and the total value of the investment grows at an increasing rate. This is the power of compound interest.

How to Use Kotak Mahindra Bank Compound Interest Calculator?

With our compound interest calculator, you can effortlessly determine the accumulated interest earned on your savings and investments. To use Kotak Mahindra Bank's calculator, you only need to fill out the fields with the amount. And the calculator will provide you with the total amount you'll earn.

For example:

Imagine you invest Rs 10,000 in a savings account for ten years with a quarterly compounding interest rate of 5%. First, we need to convert this annual rate into a decimal form of 0.05.

Now, we apply the formula:

A = P(1 + i / n) ^ (nt)



- P is the principal amount invested.

- i is the nominal interest rate (in decimal form).

- n is the compounding frequency (in this case, 4 for quarterly).

- t is the time, usually in years.

Plugging in the values:

A = Rs 10,000 * (1 + 0.05 / 4) ^ (4 * 10)

A ≈ Rs 16,436.19


So, your investment would grow to approximately Rs 16,436.19 after ten years. This shows that the compound interest earned is about Rs 6,436.19.

Frequently Asked Questions

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.

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:

  • Simple to Use and Comprehend
  • Facilitates Financial Decision-Making
  • Offer Reliable Results
  • Educate You on Difficult Financial Concepts:
  • Provide Variability

What are the differences between Simple Interest v/s Compound Interest?

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

  • Simple interest is calculated on the principal 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)

What factors affect the final amount when calculating compound interest?

Several factors that affect the final amount when calculating compound interest. It includes the initial principal amount, the interest rate, and the compounding frequency. The choice of whether the interest is added to the principal (compounded) or paid out can also impact the final amount.