How the calculation works
Maturity = principal × (1 + annual rate / (100 × frequency))^(frequency × years). The annual rate here is nominal; frequency is the number of compounding periods per year.
Work through an example
A ₹10,000 deposit at 8% nominal annual interest compounded quarterly grows to ₹10,824.32 after one year: ₹10,000 × 1.02⁴. The estimated interest is ₹824.32 before taxes. Annual compounding instead produces ₹10,800.
Assumptions and limitations
The rate stays fixed and interest is reinvested. Fractional compounding periods use fractional powers, so a bank's day-count and broken-period rules may give a different result. This is a cumulative deposit model, not an interest-payout product. TDS, income tax, penalties, and special bank terms are excluded.
The displayed defaults are examples, not live rates. Results are before tax unless explicitly stated. Figures are calculated at full precision, with amounts rounded for display, so adding displayed rows may differ by a small rounding amount.
Questions about this calculator
Is this a bank quotation?
No. Enter the rate from your bank and check its actual compounding, maturity, day-count, and tax rules.
Does the result deduct TDS?
No. Maturity and interest are shown before TDS or income tax. Tax deducted and your final tax liability are not necessarily the same.
Keep the comparison useful
Save one calculation before changing an input. Keep the other assumptions fixed, then compare the result with the saved calculation. For borrowing, look at the total interest and repayment time as well as the scheduled payment. For investing, compare contributions with growth and remember that a constant return is only an illustration.
The table provides the numerical checkpoints behind the chart. Download it as CSV if you want to inspect the values elsewhere. A comparison stays in this tab only and is lost when you reload. No account is needed.
Background reading: Investor.gov: compounding background. Our calculator, worked examples, and explanations are created for SumHatch; the linked organisation does not endorse this tool.
Methodology updated November 10, 2026.