Calculate compound interest online free with SIP contributions, multiple compounding frequencies, and inflation-adjusted wealth projections. Discover how your money grows exponentially through the power of compound returns over time.
Calculate compound interest online free with regular SIP contributions and visualize long-term wealth accumulation with inflation-adjusted real values
Add regular contributions to accelerate wealth building through systematic investing. This simulates SIP-like investments with compounding benefits.
Compound interest means earning money on your money AND on the money you already earned. It's like a snowball effect. Formula: A = P(1 + r/n)^(nt). More compounding = more growth.
For regular contributions, use the formula: FV = P(1+r)^n + PMT[((1+r)^n - 1)/r]. This combines lump sum compound interest with annuity calculations for systematic investment plans, allowing you to see total growth from both initial investment and regular additions.
Daily compounding provides the highest returns, followed by monthly, quarterly, semi-annual, and annual compounding. However, the difference becomes minimal at higher frequencies. Monthly compounding offers a good balance between maximum returns and practical investment scenarios.
Input your current age, retirement age, monthly SIP amount, and expected return rate (typically 8-12% for equity). Enable annual contribution increase to account for salary hikes. Factor in inflation to see real purchasing power of your retirement corpus.
The Rule of 72 estimates how long it takes to double your investment. Divide 72 by the annual interest rate: at 8%, money doubles in 9 years (72÷8). At 12%, it takes 6 years. This quick mental math helps compare investment options.
Our calculator uses mathematically precise compound interest formulas. However, real investment returns fluctuate due to market volatility, economic factors, and fund management fees. Use the results as projections, not guarantees, and consider inflation-adjusted values for realistic planning.
Conservative investors typically earn 6-8% annually through fixed deposits, PPF, and government bonds. While lower than equity returns (10-15%), these investments offer predictable compounding with minimal risk, ideal for capital preservation and short-term financial goals.
Inflation makes future money worth less. If you earn 10% but inflation is 6%, your real gain is just 4%. Our calculator shows what your money will actually buy in today's terms.
Compound interest is often called the "eighth wonder of the world" because it allows your money to grow exponentially over time. Unlike simple interest, which only earns returns on the principal amount, compound interest earns returns on both the principal and the accumulated interest from previous periods.
📊 Formula: A = P(1 + r/n)nt
Where A = Final Amount, P = Principal, r = Annual Rate, n = Compounding Frequency, t = Time in Years
The frequency at which interest is compounded significantly affects your returns:
Interest calculated and added once per year. Common for fixed deposits.
Interest calculated and added twice per year. Better than annual compounding.
Interest calculated and added four times per year. Common for many investments.
Interest calculated and added twelve times per year. Most beneficial for investors.
Interest calculated and added every day. Maximum compounding benefit.
A simple way to estimate how long it will take for your investment to double:
Years to Double = 72 ÷ Interest Rate
8% return = 9 years to double
12% return = 6 years to double
Compare investment options
Set realistic expectations
Plan long-term goals
💡 Pro Tip: Start investing early to maximize the power of compounding. Even small amounts invested consistently over long periods can create substantial wealth.
The most critical factor in compound interest. Longer investment periods exponentially increase returns:
Even small differences in rates create substantial variations over time:
Adding regular contributions to your compound interest investment accelerates growth significantly:
💡 Pro Tip: Use our advanced compound interest calculator with regular contributions and inflation adjustment to plan your long-term financial goals effectively.