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Compound Interest Calculator

Calculate total interest earned, future balance, and effective annual yield over time.

Total Future Value
₹1,48,985
Effective Annual Yield (APY): 8.30%
Growth Metrics
Initial Principal
₹1,00,000
Base deposit
Total Compound Interest
₹48,985
Total interest earned
Total Return Rate
48.98%
Growth on initial investment
Compounding Cycles
60 Cycles
Total calculation steps
Year-by-Year Growth Schedule
Year Starting Principal Interest Earned Ending Balance
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What is Compound Interest?

Compound interest is the interest calculated on both the initial principal amount and the accumulated interest from prior periods. Unlike simple interest, compound interest causes wealth to grow exponentially over time as interest generates additional earnings.

Understanding APY vs. Nominal Interest Rate

The nominal interest rate is the stated annual rate ($r$). The **Annual Percentage Yield (APY)** represents the true effective rate after factoring in how frequently interest is compounded within the year.