₹1,00,000 at 8% Compound Interest for 10 Years

At 8% p.a., quarterly compounding gives an effective annual rate (EAR) of 8.24%, compared to 8% for annual compounding. Monthly compounding at the same rate gives an EAR of 8.30%. Over 10 years, this difference in EAR adds ₹1,160 extra interest when switching from quarterly to monthly compounding.

At 6% annual inflation, ₹2,20,804 in 10 years has the purchasing power of roughly ₹1,23,296 in today's money. Whether this investment beats inflation depends on your assumed inflation rate. Use the Inflation calculator to explore different inflation scenarios.

A bank FD of ₹1,00,000 at 8% p.a. (quarterly compounding, the Indian standard) for 10 years would give approximately ₹2,20,804 — close to this calculation's ₹2,20,804 since both use similar compounding conventions. FD interest is taxable at your income slab rate; use the FD calculator to model the exact post-tax return. See the FD calculator.

With simple interest, ₹1,00,000 at 8% for 10 years earns a flat ₹80,000 (₹8000/year). With quarterly compound interest, you earn ₹1,20,804 — ₹40,804 more. The gap grows significantly with time: after 30 years at the same rate, the compounding advantage would be many times larger.