Compound interest calculator
See how a deposit or investment grows over time, with interest earning interest — using the standard A = P(1 + r/(100k))kt relation.
Enter your principal, annual rate, term and compounding frequency to get the maturity amount, the total interest earned and a year-by-year growth table — all computed in your browser, in Nepali rupees.
Your deposit
The amount you invest or deposit today.
Nominal yearly rate — bank fixed deposits in Nepal are often 7–11%.
Whole years the money stays invested.
How often interest is added back to the balance. More frequent compounding lifts the effective return.
Maturity amount
Rs 1,53,862
Rs 1,00,000 grown over 5 years, compounded yearly.
Total interest
Rs 53,862
Principal
Rs 1,00,000
Interest earned
Rs 53,862
Maturity value
Rs 1,53,862
Effective annual rate
9.00%
| Year | Opening | Interest | Closing |
|---|---|---|---|
| 1 | Rs 1,00,000 | Rs 9,000 | Rs 1,09,000 |
| 2 | Rs 1,09,000 | Rs 9,810 | Rs 1,18,810 |
| 3 | Rs 1,18,810 | Rs 10,693 | Rs 1,29,503 |
| 4 | Rs 1,29,503 | Rs 11,655 | Rs 1,41,158 |
| 5 | Rs 1,41,158 | Rs 12,704 | Rs 1,53,862 |
An indicative estimate using A = P · (1 + r / (100·k))k·t. It assumes a fixed rate and no withdrawals, fees or tax. Actual bank returns vary, and interest income may be subject to withholding tax — confirm the current rate and terms with your bank or financial adviser.
How interest earns interest
Each period, interest is added back to the balance, so the next period's interest is calculated on a slightly larger amount. Over years, that snowball is the difference between simple and compound growth.
Rate per period
Divide the annual rate by the number of compounding periods a year: r/(100·k). Monthly compounding splits the rate into 12 smaller steps.
Compound it
A = P · (1 + r/(100·k))^(k·t). The principal is multiplied by the growth factor once for every compounding period over the term.
Maturity & interest
The result A is the maturity amount; A − P is the total interest earned. The growth table shows the opening, interest and closing balance for each year.
Compound interest, answered
How is compound interest calculated?+
Compound interest uses A = P · (1 + r / (100·k))^(k·t), where P is the principal, r is the annual interest rate in percent, k is the number of compounding periods per year (1 for yearly, 12 for monthly, 365 for daily) and t is the number of years. The total interest earned is simply A − P.
What is the difference between simple and compound interest?+
Simple interest is charged only on the original principal, so it grows in a straight line. Compound interest is charged on the principal plus all previously accumulated interest, so the balance grows faster over time — this 'interest on interest' effect is what this calculator models.
Does more frequent compounding give a higher return?+
Yes. For the same nominal annual rate, compounding monthly or daily adds interest back more often, so the effective annual rate is slightly higher than yearly compounding. For example, 9% compounded monthly gives an effective annual rate of about 9.38%, versus 9.00% compounded yearly.
What interest rates do Nepali banks offer on deposits?+
Fixed-deposit rates in Nepal move with Nepal Rastra Bank policy and bank liquidity, and have commonly sat in the range of roughly 7–11% in recent years. Rates change frequently, so use the published rate from your specific bank for the period you are saving. The values here are indicative only.
Is interest income from deposits taxed in Nepal?+
Interest earned on bank and financial-institution deposits in Nepal is generally subject to withholding tax (TDS) at source. This calculator shows the gross maturity amount before any tax. Check the current TDS rate and rules with the Inland Revenue Department or your bank.
What is the effective annual rate shown here?+
The effective annual rate (EAR) converts your nominal rate and compounding frequency into the equivalent rate if interest were added just once a year: EAR = (1 + r/(100·k))^k − 1. It lets you compare deposits that compound at different frequencies on a like-for-like basis.
Sources & data note
Based on the standard compound-interest relation A = P(1 + r/(100k))^(kt). Deposit-rate ranges reflect typical recent Nepali bank fixed-deposit rates and are indicative only — rates move with Nepal Rastra Bank policy and bank liquidity, and interest income may be subject to withholding tax. Confirm the current rate, compounding terms and tax treatment with your bank before relying on these figures.