Compound Interest & Returns Calculator
Lump sum, SIP, returns achieved and value over timeWhat are you working out?
Reading of the result
What this calculator does
Five related questions about money and time, answered with the working shown rather than just a figure.
- Compound interest — what a lump sum grows to, at any compounding frequency, with an optional monthly addition
- Monthly investment — what a SIP or recurring deposit builds to, including a yearly step-up in the amount
- Return achieved — the CAGR and the absolute return on an investment that has already run its course
- Reaching a target — how much you need to put aside each month to arrive at a figure
- Value over time — present and future value, and what a sum will actually be worth once inflation is taken off
Why compounding frequency matters
Interest at 8% compounded quarterly is not the same as 8% compounded once a year. The quarterly version pays you interest on interest four times, so the effective annual rate is higher — 8.24% rather than 8%. Bank fixed deposits usually compound quarterly, small savings schemes vary, and a bond may pay half-yearly. Set the frequency to match the product or the answer will be wrong.
CAGR and absolute return are different things
If ₹1,00,000 becomes ₹2,00,000 over five years, the absolute return is 100% but the compound annual growth rate is 14.87%. Absolute return tells you how much you made; CAGR tells you the steady annual rate that would have produced it, which is the only fair way to compare two investments held for different lengths of time.
Inflation is the figure people forget
A return of 7% when inflation is running at 6% leaves you barely ahead. This calculator shows the value in today's money alongside the headline figure, because that is the number that actually matters when the money is spent.
Tax on what you earn
Interest on a fixed deposit is taxed at your slab rate every year, whether or not you withdraw it. Gains on listed equity and equity mutual funds are taxed under Sections 196 and 198 of the Income-tax Act, 2025 — 20% short term, 12.5% long term above ₹1,25,000. Debt fund gains are taxed differently again. The figures here are before tax; work out the tax separately with the income tax calculator.
Disclaimer
This calculator is provided only to give quick and easy access to a basic computation of interest and returns. It assumes a constant rate throughout and takes no account of charges, commissions, exit loads, taxes or any variation in the actual rate, so a real investment will not behave exactly as shown. It is not advice on investing, and nothing here is a forecast or a promise of any return. For any financial decision, or for any statutory use, the position should be checked under the provisions contained in the relevant Acts and Rules and a professional consulted. The output is for information only and no liability is accepted for any action taken on the basis of it.