# Compound Interest Calculator

> Compound interest on a principal with monthly, quarterly, half-yearly or yearly compounding.

Interactive calculator: https://www.cashiq.in/tools/compound-interest-calculator
Last updated: 2026-11-10

Compound interest earns interest on past interest as well as on the principal. ₹1,00,000 at 8% for 10 years grows to ₹2,15,892 compounded yearly, or ₹2,20,804 compounded quarterly.

## How it is calculated

```
A = P × (1 + r/n)^(n × t)
```

- P is the principal, r the annual rate as a decimal, n the compounding periods a year, t the years.
- Compound interest = A − P.

## Worked example

- Inputs: ₹1,00,000 at 8% for 10 years, compounded yearly
- Result: ₹2,15,892 final amount, ₹1,15,892 interest
- Open it: https://www.cashiq.in/tools/compound-interest-calculator?principal=100000&rate=8&years=10&compounding=yearly

## Use it with your own numbers

Add query parameters to the calculator URL. The page renders the result, a one-sentence summary and a year-by-year table in its HTML.

| Parameter | Meaning | Allowed values |
| --- | --- | --- |
| `principal` | Principal | 100 to 10,00,00,000 |
| `rate` | Interest rate (% a year) | 0.1 to 50 |
| `years` | Years | 1 to 50 |
| `compounding` | Compounding | monthly | quarterly | half-yearly | yearly |

Example: https://www.cashiq.in/tools/compound-interest-calculator?principal=100000&rate=8&years=10&compounding=yearly

JSON API: https://www.cashiq.in/api/v1/compound-interest-calculator?principal=100000&rate=8&years=10&compounding=yearly

## Frequently asked questions

### What is the compound interest formula?

A = P × (1 + r/n)^(n × t). The interest earned is A − P.

### How is compound interest different from simple interest?

Simple interest is earned only on the principal. Compound interest is also earned on interest already added, so it grows faster over time.

### Does more frequent compounding make a big difference?

It helps, but modestly. The rate and the number of years matter far more.

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Results are estimates for planning, not investment, tax or legal advice. Returns are assumptions, not guarantees. Source: CashIQ, https://www.cashiq.in/tools/compound-interest-calculator