Compute compound interest and total maturity for FDs, RDs, and investments. Supports quarterly, monthly, and annual compounding, with the effective annual rate.
Compound interest reinvests each period's interest so the base keeps growing: A = P(1 + r/n)^(n·t). The gap versus simple interest looks trivial in year one and enormous by year ten.
For a business owner the same math runs both directions — it grows an FD or SIP, and it also compounds the cost of rolling over expensive working-capital debt. An 18% p.a. informal loan compounds to more than double the principal in about four years.
Add a yearly top-up under Advanced options to model a recurring SIP-style contribution on top of the initial principal — the maturity value and year-by-year table both reflect it, and 'Compound interest' shown is the interest actually earned, not the extra amount you put in.
Fixed deposits typically compound quarterly, savings accounts calculate daily and credit quarterly, and most loans compound monthly. More frequent compounding = slightly higher effective rate for the same nominal rate.
Divide 72 by the annual rate to estimate doubling time. At 8%, money doubles in ~9 years; at 18% (typical unsecured business credit), the debt doubles in ~4 — which is exactly why udhaar recovery speed matters.
The amount you enter is added to the balance at the start of each year, before that year's compounding — so it earns interest for the full year it's added, same as a fresh SIP instalment would. Leave it at zero and the calculator behaves exactly as a plain lump-sum compound interest calculator.
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