We combine the Future Value of your Lumpsum with the Future Value of your Regular Deposits:
$$A = P\left(1+\frac{r}{n}\right)^{nt} + PMT \times \frac{(1+r/n)^{nt}-1}{r/n}$$
*Adjusted for periodic payment synchronization.
Compound Engine
Standalone Financial Module
Compound Pro
₹
₹
Wealth Outcome
Compounded Quarterly
Maturity Value
₹6.76 Lakh
Total Invested
₹3.40 Lakh
Wealth Gained
₹3.36 Lakh
Effective Yield
10.38%
Principal (50%)Interest (50%)
Formula Applied
Financial Science
Power of Compounding
Frequency Matters
The more frequently interest is added (e.g., Monthly vs Yearly), the higher the final amount. This is why credit cards (daily) are expensive and FDs (quarterly) are better than simple savings.
Exponential Curve
Linear growth is predictable, but compounding is exponential. In the later years of your investment, your interest often earns more than your original principal every single year.
The Rule of 72
A quick shortcut: Divide 72 by your interest rate to find out roughly how many years it takes to double your money through compounding.