Compounding Calculator
Compounding is the closest thing investing has to magic. See how a starting amount and regular additions can grow over the years at a given rate of return.
- You investRs. 9,50,000
- Growth (compounding)+Rs. 18,47,691
Estimates compound monthly. Real returns vary — markets rise and fall. This is educational, not financial advice.
What is compounding?
Compounding is earning returns on your returns. Year one looks ordinary; the magic is in the later years, when growth is stacked on all the growth before it.
Why time beats timing
For most people, wealth isn’t built by perfectly timing the market — it’s built by time in the market. Starting five years earlier can outweigh investing far larger amounts later.
How it applies to trading
The same maths governs a trading account: consistent small gains, with losses kept small, compound far more reliably than occasional big wins that get wiped out by big losses.
Tips
- Automate regular contributions so you never skip.
- Reinvest returns and dividends.
- Protect your capital — a big loss resets the compounding clock.
Frequently asked questions
What is compound interest?
Earning returns on both your original money and the returns it already generated, so growth accelerates.
Why does starting early matter?
Compounding does most of its work later, so more time means dramatically bigger results — even with smaller amounts.
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