How it works
Compounds your principal at the chosen rate and frequency (yearly, quarterly, monthly, or daily). Optional monthly contributions are also compounded for their remaining period. Growth accelerates dramatically in the later years; the bulk of returns arrives in the final third of your horizon.
When to use this
When comparing fixed-return instruments (FDs, PPF, RDs, bonds) with different compounding schedules, or to see how much delaying investment costs in real rupees. For ongoing monthly savings, pair this with the SIP calculator.
Frequently asked questions
Yearly vs monthly compounding - does it matter?
Yes. Monthly compounding reinvests interest more often, producing higher returns. Rs.1L at 12% for 10 years yields ~Rs.3.1L yearly vs ~Rs.3.3L monthly, a Rs.20K difference from the same stated rate.
What rate should I use for PPF?
PPF currently earns 7.1% compounded annually. Enter 7.1% with Yearly frequency. Note: PPF has a 15-year lock-in.
What is the Rule of 72?
Divide 72 by your annual rate to estimate doubling time. At 12% that is ~6 years; at 8%, ~9 years. This calculator gives you the exact figure.