📈 Compound Interest Calculator
When does your money start working for you?
Last updated: March 2026
* This calculator is for educational purposes only and does not constitute financial advice.
Compound interest is the foundation of SIP investing. Your returns generate additional returns, creating exponential growth. This is why equity mutual funds and NIFTY 50 index funds are so powerful for long-term wealth creation in India.
Our calculator identifies the 'tipping point' — when your annual investment gains exceed your total yearly SIP contributions. From that point, your money works harder than you do. PPF, EPF, and mutual fund SIPs all benefit from this principle.
Enter an initial amount, monthly SIP, expected return (12% for equity, 7% for PPF), and period. See your final corpus, total deposits, and how much came from compound interest growth.
📊 How does this compare to a Nifty 50?
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FAQ
What is compound interest?
Returns earning returns. In a SIP, each month's investment compounds immediately, creating massive wealth over decades.
What is the tipping point?
When annual gains exceed yearly SIP contributions. At 12%, this happens around year 12-15.
Where does compounding work?
PPF, EPF, NPS, equity SIPs, and RDs all benefit. Start early, stay invested.
How much will ₹10,000/month SIP be worth after 25 years?
₹10,000/month SIP at 12% annual return for 25 years grows to approximately ₹1.90 crore. Total investment is only ₹30 lakhs — meaning ₹1.60 crore is pure compounding profit!
What is the Rule of 72?
Divide 72 by the annual return to find how long money takes to double. At 12% (typical equity SIP), your money doubles every 6 years. At 15%, every 4.8 years. A powerful mental shortcut for every Indian investor.
SIP vs lump sum — which is better?
SIP wins for salaried investors: rupee-cost averaging smooths volatility, and discipline beats timing. Lump sum beats SIP ~65% of the time mathematically, but SIP is more practical and psychologically easier to maintain over decades.
Is this better than a SIP investment?
A typical Indian equity SIP delivers ~12% annual returns. Compare your compound interest result against this benchmark — if your chosen rate is higher, your investment outperforms a standard SIP. However, SIPs in diversified equity funds like NIFTY 50 offer rupee cost averaging and lower volatility, making them ideal for most Indian investors.
How does this compare to a SIP?
Compare your results to investing in a Nifty 50 at ~12% annually. Use this as a baseline to evaluate your investment decision.
How much are expense ratios really costing you? Check with the Expense Ratio Calculator
📊 Data source: Standard financial models. Prices and data in this article are reviewed and updated semi-annually. Last update: March 2026.
📈 Compound Interest: The Force Einstein Called the 'Eighth Wonder of the World'
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Created by Amiel Riss | SmartMoney77