What is it & why use it?
Calculate compound interest on savings, loans, or investments with flexible compounding periods. This tool on Calci.in explains concepts in plain language and helps you visualize growth of money with compounding.

Formula (explained)
A = P × (1 + r/n)^(n × t)
Variables: A = Final amount, P = Principal, r = Annual interest rate, n = Compounding times per year, t = Years.

Example calculation
₹1,00,000 at 8% annual interest compounded quarterly for 10 years → ≈ ₹2,21,965 (illustrative).

Benefits & use cases
• Understand power of compounding
• Compare different compounding periods
• Plan long‑term wealth

Related calculators on Calci.in
FD Calculator
RD Calculator
Inflation Calculator

External references (authority sources)
Investopedia – Compound Interest
RBI

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FAQs
Q1: What is compound interest?
A: It is interest calculated on both the initial principal and the accumulated interest from prior periods.
Q2: How is it different from simple interest?
A: Simple interest is only on principal, while compound interest grows on principal + accumulated interest.
Q3: Which compounding frequency is best?
A: More frequent compounding yields higher returns (e.g., quarterly > yearly).
Q4: Is compound interest good or bad?
A: It helps investments grow but also increases debt burden if borrowing.