Interest on a lump sum, compounded yearly to daily, compared with simple interest.
₹
% p.a.
years
months
Interest is
Simple vs compound60 months at 8% a year
Total amount₹1,46,9331.47 lakh
Principal₹1,00,0001.00 lakh
Interest earned₹46,93346.9 thousand
Principal · 68%Interest · 32%
Simple interest₹1,40,000
Compounded yearly₹1,46,933
With simple interest you'd earn ₹40,000; compounding adds ₹6,933 more.
Growth year by year
SimpleCompound
Simple vs compound interest
Simple interest is earned only on the original amount: A = P × (1 + r × t). Compound interest is also earned on interest already added: A = P × (1 + r/n)n × t, where n is how many times a year interest is added. The more often it compounds, the more you earn.
Estimates only, not financial advice. Your bank's or fund's actual figures can differ (rounding, fees, taxes, date conventions). Calculated in your browser; nothing you enter is sent anywhere.
