Compound interest helps your money grow faster by adding interest not only to your initial investment but also to the interest earned over time. Each compounding period increases the base amount, allowing your returns to generate further returns.
In simple terms, you earn interest on interest, which accelerates wealth creation.
The impact of compounding becomes more powerful with a longer investment duration. Staying invested for more years generally leads to significantly higher returns.
Formula to Calculate Compound Interest
A = P × (1 + r/n)ⁿᵗ
A = Total amount after compounding
P = Principal (initial investment)
r = Annual interest rate
n = Number of compounding periods per year
t = Investment duration in years
You can also simplify this process by using the Bandhan Bank Compound Interest Calculator for quick and accurate results.
How Can Bandhan Bank’s Compound Interest Calculator Help You?
Accurate calculations
Delivers precise estimates based on your inputs
Quick and convenient
Eliminates manual calculations
Supports multiple investment types
Suitable for lump sum and recurring investments
Better financial planning
Helps align investments with long-term goals
Informed decision-making
Enables comparison across timeframes and rates
Why Is the Power of Compounding Important?
The power of compounding plays a vital role in long-term wealth creation. It allows your earnings to continuously grow by reinvesting returns over time.
As compounding progresses, your investment growth accelerates, helping you:
Build wealth steadily
Stay ahead of inflation
Achieve life goals such as retirement, education, or asset creation
Create a more financially secure future
Advantages of Using the Bandhan Bank Calculator
Speed
Get instant results without complex calculations or expert assistance.
Accuracy
Ensure reliable and error-free projections for effective financial planning.
Reliability
A dependable tool suitable for investors across different risk profiles and investment horizons.
Steps to Use Bandhan Bank’s Compound Interest Calculator
1
I Want to Invest
Enter the amount you plan to invest. Choose the investment frequency — monthly, half-yearly, yearly, or one-time.
2
I Want to Invest For
Select the duration during which you will make investments.
3
I Will Stay Invested For
Choose how long you plan to remain invested to benefit from compounding.
4
I Expect a Rate of Return (Annually)
Enter the expected annual rate of return to calculate projected growth.
Click Check Plan to view your estimated investment value.
Understanding Rate of Return (RoR)
Rate of Return (RoR) measures the profit or loss of an investment over a specific period. It is commonly used to evaluate the performance of financial products such as deposits, mutual funds, and other investments.
Rate of Return = [(Current Value − Initial Value) ÷ Initial Value] × 100
