Calculator Guide

What is Compound Interest?

Compound interest kya hota hai, simple interest se kaise alag hai, aur ye long-term mein zyada return kyun deta hai — free interest calculator ke saath.

Definition

Compound interest wo interest hai jo sirf principal par nahi, balki principal + pehle se accumulated interest, dono par calculate hota hai. Isse "interest par interest" milta hai, jo lambi avadhi mein simple interest se kaafi zyada return deta hai.

Formula

A = P × (1 + r/n)^(n×t)

  • A: Final amount (principal + interest)
  • P: Principal (original investment)
  • r: Annual interest rate (decimal mein, jaise 8% = 0.08)
  • n: Compounding frequency per year (annual=1, quarterly=4, monthly=12)
  • t: Time in years

Steps

  1. Apna principal amount (P) note karein.
  2. Annual interest rate (r) aur compounding frequency (n — annual/quarterly/monthly) decide karein.
  3. Time period (t) years mein note karein.
  4. Formula A = P × (1 + r/n)^(n×t) use karein final amount ke liye.
  5. Neeche calculator mein ye sab daal kar simple vs compound interest dono compare karein.

Example

Example: ₹1,00,000 principal, 8% annual rate, annual compounding, 10 saal — compound interest se final amount ≈ ₹2,15,892 banta hai, jabki simple interest se sirf ₹1,80,000 (₹35,892 ka farak sirf compounding ki wajah se).

Frequently Asked Questions

Compound interest kya hota hai?

Compound interest wo interest hai jo principal + pehle se accumulated interest, dono par calculate hota hai — "interest par interest" milta hai, jo simple interest se lambi avadhi mein zyada return deta hai.

Simple aur compound interest mein farak kya hai?

Simple interest sirf original principal par calculate hota hai, har period mein same amount; compound interest ek growing base par calculate hota hai, isliye time ke saath tezi se badhta hai.