₹1,00,000 at 8% for 5 years = ₹1,48,024

💰 Interest Calculator

Calculate simple and compound interest for loans, savings, and investments

Interest Calculation

Compound Interest
Simple Interest
₹1,00,000
8% per year
5 years
Compounded once per year

📈 Investment Growth Reference

Rule of 72: Divide 72 by interest rate to estimate doubling time. At 8%: 72 ÷ 8 = 9 years to double.

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📊 Interest Growth Visualization

💰 Investment Results

Total Value

₹1,48,024
After 5 years

Interest Earned

₹48,024
Total profit

Annual Return

8.16%
Effective annual rate

📋 Detailed Breakdown

Principal Amount ₹1,00,000
Interest Earned + ₹48,024
Tax Deduction (10% TDS) - ₹0
Net Interest ₹48,024
Total Value ₹1,48,024

📅 Yearly Growth

Year Principal Interest Total

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⚖️ Interest Type Comparison

Compound Interest
Interest on interest
₹1,48,024
After 5 years
Simple Interest
Interest only on principal
₹1,40,000
After 5 years
Difference
Compound vs Simple
+₹8,024
Extra earnings

🚀 Common Investment Scenarios

Savings Accounts:

🏦 ₹50,000 at 4% for 3 years = ₹56,243
🏦 ₹1 Lakh at 5% for 5 years = ₹1,28,008
🏦 ₹2 Lakh at 6% for 7 years = ₹3,01,226
🏦 ₹5 Lakh at 7% for 10 years = ₹9,83,576
🏦 ₹10 Lakh at 8% for 15 years = ₹31,72,169

Investment Plans:

📈 FD: ₹5 Lakh at 9% for 5 years = ₹7,69,312
📈 Mutual Fund: ₹1L at 12% for 10y = ₹3,10,585
📈 SIP: ₹20K at 8% for 20 years = ₹11,72,558
📈 Real Estate: ₹10L at 10% for 20y = ₹67,27,500
📈 Stocks: ₹50K at 15% for 30 years = ₹33,10,588

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📜 Calculation History

🧮 Interest Formulas

Compound Interest Formula:

A = P(1 + r/n)nt
Where:
A = Total amount
P = Principal amount
r = Annual interest rate (decimal)
n = Compounding periods per year
t = Time in years
Example:
P = ₹1,00,000, r = 8% = 0.08
n = 1, t = 5 years
A = 100000 × (1 + 0.08/1)1×5
A = ₹1,48,024

Simple Interest Formula:

A = P(1 + rt)
Where:
A = Total amount
P = Principal amount
r = Annual interest rate (decimal)
t = Time in years
Example:
P = ₹1,00,000, r = 8% = 0.08
t = 5 years
A = 100000 × (1 + 0.08 × 5)
A = ₹1,40,000

❓ Frequently Asked Questions

What is the difference between simple and compound interest?

Simple interest is calculated only on the principal amount. Compound interest is calculated on the principal amount plus accumulated interest from previous periods. Compound interest grows faster because you earn interest on interest.

How does compounding frequency affect returns?

The more frequently interest is compounded, the higher the total returns. For example, ₹1,00,000 at 8% for 5 years: Annual compounding = ₹1,48,024, Monthly compounding = ₹1,49,036, Daily compounding = ₹1,49,175.

What is the Rule of 72?

The Rule of 72 is a quick way to estimate how long it will take for an investment to double. Divide 72 by the annual interest rate. Example: At 8% interest, 72 ÷ 8 = 9 years to double your money.

How is TDS calculated on interest income?

In India, TDS (Tax Deducted at Source) of 10% is deducted if interest income exceeds ₹40,000 in a year (₹50,000 for senior citizens). This calculator includes an option to calculate net interest after TDS deduction.

What is the effective annual rate?

Effective Annual Rate (EAR) is the actual annual rate when compounding is considered. For 8% compounded quarterly, EAR = (1 + 0.08/4)^4 - 1 = 8.24%. This is higher than the nominal 8% rate.