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Calculate CI vs SI with all compounding frequencies — see the power of compounding
Enter investment details and click Calculate
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest (which only applies to the principal), compound interest makes your money grow exponentially. The formula is A = P × (1 + r/n)(n×t), where P is the principal, r is the annual interest rate, n is the compounding frequency per year, and t is the time in years. Albert Einstein reportedly called compound interest the “eighth wonder of the world.”
For example, Rs 1 lakh invested at 10% simple interest for 20 years yields Rs 3 lakh total. The same amount at 10% compound interest (annual) yields Rs 6.73 lakh — more than double. With monthly compounding, it grows to Rs 7.33 lakh. This difference becomes more dramatic over longer periods, which is why starting to invest early is so powerful.
Simple interest is calculated only on the original principal: SI = P × r × t. It grows linearly — Rs 10,000 per year on Rs 1 lakh at 10%. Compound interest includes interest earned on previous interest, creating exponential growth. In year 1, both give the same result. By year 10, CI gives Rs 1.59 lakh more than SI. By year 30, the gap widens to Rs 14.45 lakh (Rs 17.45L CI vs Rs 3L SI on the same Rs 1 lakh principal). This is why compound interest is the foundation of long-term wealth building.
More frequent compounding leads to slightly higher returns because interest starts earning interest sooner. Rs 10 lakh at 10% for 10 years: Annual compounding gives Rs 25.94 lakh, quarterly gives Rs 26.85 lakh, and monthly gives Rs 27.07 lakh. The difference between annual and monthly compounding is Rs 1.13 lakh — meaningful on larger amounts and longer periods. Banks typically compound FD interest quarterly, while PPF compounds annually. Mutual fund returns compound daily (NAV-based). Understanding this helps you compare investments on an equal footing using the Effective Annual Rate (EAR).
| Feature | JumpTools | ClearTax | Groww | PolicyBazaar |
|---|---|---|---|---|
| Price | Free | Free (limited) | Free | Free (ads) |
| Registration | No signup | Required | Required | Required |
| CI vs SI Comparison | Side-by-side chart | No | No | No |
| All Frequencies | 4 (Monthly to Annual) | Annual only | Annual only | Quarterly only |
| Effective Rate | Auto calculated | No | No | No |
| Pre-computed Table | 150 rows | No | No | No |
| Privacy | 100% client-side | Server-based | Server-based | Server-based |
Compare monthly, quarterly, half-yearly, and annual compounding side by side.
Interactive line chart showing compound vs simple interest growth over time.
See the true annual rate accounting for compounding frequency.
Detailed table with opening balance, interest earned, and closing balance each year.
Visual demonstration of how interest-on-interest accelerates over time.
Pre-computed CI for every principal from Rs 1L to Rs 1.5Cr at multiple rates.
Enter Principal Set the initial investment amount (Rs 1K to Rs 1Cr).
Set Rate & Period Choose annual interest rate (1-20%) and time period (1-30 years).
Select Compounding Pick compounding frequency: Monthly, Quarterly, Half-Yearly, or Annually.
Compare Results View CI vs SI, all frequencies, growth chart, and effective annual rate.
Calculate compound interest with 4 frequencies (monthly to annual). CI vs SI comparison chart. Effective annual rate. Year-by-year breakdown. 100% client-side.