Compound Interest Calculator
See how your money grows over time with compound interest. Includes yearly breakdown and growth chart.
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How to Use Compound Interest Calculator
Compound Interest Calculator — Grow Your Wealth
Albert Einstein reportedly called compound interest the "eighth wonder of the world." Our free Compound Interest Calculator shows you exactly how your money grows over time with the power of compounding — an essential tool for anyone planning savings, investments, or retirement in Pakistan and worldwide.
The Power of Compound Interest
PKR 100,000 invested at 12% annual interest for 10 years: with simple interest = PKR 220,000. With compound interest (monthly) = PKR 330,039. The difference is PKR 110,039 — pure compound growth.
Best Savings Options in Pakistan 2026
- National Savings Certificates: 15–17% p.a.
- Prize Bonds: variable returns with prize element
- Bank Fixed Deposits: 12–15% p.a.
- Stock Market (PSX): 15–25% average historical
- Real Estate: 8–15% p.a. depending on location
Frequently Asked Questions
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest, it grows exponentially over time — making it extremely powerful for long-term investing.
A = P × (1 + r/n)^(nt), where A = final amount, P = principal, r = annual interest rate (decimal), n = compounding frequency per year, t = time in years.
Simple interest is calculated only on the principal amount. Compound interest is calculated on the principal plus previously earned interest. Over time, compound interest produces significantly higher returns.
In 2026, Pakistani savings accounts offer 8-12% p.a., National Savings Certificates offer 15-17% p.a., and fixed deposits at banks offer 12-15% p.a. depending on the duration.
The more frequently interest compounds, the more you earn. Daily compounding > Monthly > Quarterly > Annually. The difference is small for short periods but significant over decades.