Monthly Compound Interest Calculator
Calculate how your money grows with monthly compounding interest.
- Free to use
- No registration required
- Works on all devices
- Last updated
- 13-09-2026
Your result
₹1,48,984.57
Maturity amount
AI explanation
Formula
A = P × (1 + r/12)^(12×t)Worked example
₹1L at 8% for 5 years, monthly compounding
| Field | Value |
|---|---|
| Principal | ₹1,00,000 |
| Annual interest rate | 8 |
| Duration | 5 |
| Maturity amount | ₹1,48,984.57 |
| Total interest earned | ₹48,984.57 |
Assumptions
- Uses 12 compounding periods per year.
Frequently asked questions
What kinds of accounts use monthly compounding?
Many recurring/fixed deposit products and some savings accounts compound monthly, meaning interest earned is added to the principal every month rather than annually.
How does monthly compounding compare to annual compounding?
Monthly compounding earns slightly more than annual compounding for the same nominal rate, since interest starts earning its own interest sooner within each year.
Why does the compounding frequency matter?
More frequent compounding means interest is calculated and added to principal more often, slightly increasing the effective annual return compared to less frequent compounding at the same nominal rate.
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Sources
- Master Direction – Reserve Bank of India (Interest Rate on Deposits) — Reserve Bank of India. Effective 03-03-2016, checked 13-09-2026.
This calculator provides a general estimate only and does not constitute financial advice.
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