How to use this calculator
- Enter the amount and the yearly interest rate.
- Choose the number of years.
- Choose how often interest is added — or “Simple” if it never is.
- If you add money every month, enter it too.
Example: ₹1,00,000 at 7.5% for 5 years becomes ₹1,43,563 with interest added yearly, and ₹1,44,995 with interest added every quarter.
Frequently asked questions
What is the difference between simple and compound interest?
Simple interest is paid only on the money you put in. Compound interest is also paid on the interest already added. ₹1,00,000 at 7.5% for 5 years earns ₹37,500 as simple interest, and ₹44,995 when interest is added every quarter.
Why does the difference grow so much over time?
Because interest keeps earning interest. Over 20 years the same ₹1,00,000 at 7.5% grows to ₹2,50,000 with simple interest, but to ₹4,41,987 with quarterly compounding.
What is the effective yearly rate?
It is what the rate is really worth once compounding is counted. 7.5% added every quarter is 7.71% a year. Use it to compare deposits that add interest at different times.
How do Indian banks add interest on FDs?
Most banks add FD interest every quarter. Savings accounts usually work out interest on the daily balance and add it every quarter. Check your bank’s terms; for FDs you can also use the FD calculator.
Is interest taxed?
Yes. Interest from bank deposits is added to your income and taxed at your slab rate. The amounts here are before tax.