💰 Investment Parameters
Common rates: FD (6-8%), Equity (10-15%), High-risk (15%+)
Higher frequency = Higher returns
📊 Investment Results
Compound Interest
₹2,59,374
Gain: ₹1,59,374
Simple Interest
₹2,00,000
Gain: ₹1,00,000
Compounding Advantage
₹59,374
59.37% more than simple interest
Effective Annual Rate
10.38%
Total Return
159.37%
Doubling Period
7.3 years
📅 Year-by-Year Growth
| Year | Principal | Simple Interest | Compound Interest | Difference |
|---|
🎯 Quick Scenarios
Conservative (FD)
₹1L @ 8% for 10 years
₹2,15,892
Moderate (Equity)
₹1L @ 12% for 10 years
₹3,10,585
Aggressive
₹1L @ 15% for 10 years
₹4,04,556
Long Term
₹50K @ 10% for 20 years
₹3,36,375
💡 Compounding Insights
The Magic of Time
Starting 5 years earlier can increase your final amount by ₹1,61,051 (62% more).
Frequency Impact
Monthly compounding earns ₹4,767 more than annual compounding over 10 years.
Rate Sensitivity
Just 1% higher rate can increase your final amount by ₹25,937 over 10 years.
ℹ️ Understanding Compound Interest
What is Compound Interest?
Compound interest is interest calculated on both the initial principal and previously earned interest. It's "interest on interest" that accelerates wealth growth over time.
The Rule of 72
Divide 72 by your interest rate to estimate how long it takes to double your money. At 10% rate: 72÷10 = 7.2 years to double.
Compounding Frequency
More frequent compounding means higher returns. Daily compounding typically earns more than monthly, which earns more than annual.