Compound Interest Calculator
Calculate how your money grows with the power of compound interest.
Calculate Compound Interest
Results
How compound interest works
Compound interest is interest calculated on both the initial principal and accumulated interest. The more frequently it compounds, the faster your money grows.
A = P(1 + r/n)^(nt)Where:
A = Final amount
P = Principal
r = Annual interest rate (decimal)
n = Compounding frequency per year
t = Time in years
Example: NPR 1 lakh at 10% for 5 years (quarterly)
A = 100,000(1 + 0.10/4)^(4×5) = NPR 1,64,362
FAQs
What is compound interest?
Compound interest is interest on interest. You earn interest not just on your original amount, but also on previously earned interest.
Which is better: daily or monthly compounding?
Daily compounding gives slightly higher returns than monthly. But the difference is small for typical interest rates.
How is it different from simple interest?
Simple interest is only on the principal. Compound interest includes interest on accumulated interest, growing faster.
What is the Rule of 72?
Divide 72 by your interest rate to estimate years to double your money. At 10%, your money doubles in about 7.2 years.
Do banks in Nepal offer compound interest?
Yes! Most savings accounts and fixed deposits use compound interest, typically compounded quarterly or monthly.