HDFC Compound Interest Calculator is a hassle-free online tool that calculates the compound interest and displays how much your investment will grow, considering interest is added to the principal at regular intervals. This tool simplifies financial planning by providing a clear projection of future returns.
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Investment Plans
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under
10(10D))
Compound Interest (CI) is the interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest, which is only calculated on the principal amount, compound interest allows your investment to grow at an increasing rate, as interest is earned not just on the principal but also on the interest already earned. This results in exponential growth over time.
What is the HDFC Compound Interest Calculator?
The HDFC Compound Interest Calculator is an online tool that helps you easily calculate the interest earned on an investment or deposit over time based on compound interest. By inserting key details such as the principal amount, interest rate, and investment period, the compound interest calculator accurately estimates the total returns, helping you make informed financial decisions.
Why Use the HDFC Compounding Calculator?
You should use the HDFC CI Calculator for your best investment plans because of the following reasons:
Quick and easy calculations
Accurate results
User-friendly interface
Time-saving tool
Allows flexible inputs
Complete your financial analysis using the SIP Calculator.
How to Use the Compound Interest Calculator of HDFC?
Follow the steps mentioned below to learn the use of the HDFC compound interest calculator:
Step 1: Enter the Principal Amount and choose your investment frequency (One-Time, Monthly, or Yearly).
Step 2: Select the total investment period, including the number of years you want to invest and the years to stay invested.
Step 3: Enter the annual interest rate to calculate how much your money will grow over time.
RESULT: The HDFC compound interest calculator will automatically show you the interest earned and the total amount at maturity from your investments.
How Does an HDFC Compound Interest Calculator Work?
The HDFC compounding calculator works based on the following compound interest formula:
A = P (1 + r/n) ^ nt Compound Interest (CI) = A - P
Terms used in HDFC Compound Interest Calculator
A
stands for Total Compounded Amount
P
stands for Principal Interest
r
stands for Rate of Interest
n
stands for Compounding Frequency of Interest
t
stands for Investment Period
Illustration of HDFC Compound Interest Calculator:
If you invest ₹1,00,000 in a lump sum for 5 years with an annual interest rate of 12%, the returns will be as follows:
Year
Principal Amount (P)
Interest Compounding Formula
Total Compounded Amount (A)
Total Compound Interest (CI)
1 Year
₹1,00,000
A = 1,00,000 (1+ 12/100)^1
₹1,12,000
CI= ₹12,000
2nd Year
₹1,12,000
A= 1,12,000 (1+12/100)^1
₹1,25,440
CI= ₹25,000
3rd Year
₹1,25,440
A= 1,25,440 (1+ 12/100)^1
₹1,40,493
CI= ₹40,492
4th Year
₹1,40,492
A= 1,40,492 (1+ 12/100)^1
₹1,57,351
CI= ₹57,351
5th Year
₹1,57,351
A= 1,57,351 (1+ 12/100)^1
₹1,76,233
CI ₹76,233
So, the total amount earned at the end of the 5-year period will be ₹1,76,233, and the compound interest earned is ₹76,233.
Benefits of the Power of Compounding Calculator by HDFC
The key benefits of HDFC Life compound interest calculator are as follows:
Quick Results: It easily calculates the growth of your chosen best investment options over time.
Simple Interface: The HDFC compounding calculator has a user-friendly design, which makes it easy to use for everyone.
Accurate Projections: It helps provide precise future value estimates based on compounding.
Financial Planning Tool: The compound interest calculation of HDFC helps in effectively planning long-term financial goals.
Flexible Inputs: It also allows you to customize investment amounts, durations, and interest rates.
Saves Time: The calculator eliminates manual calculations, providing instant results.
Conclusion
The HDFC Compound Interest Calculator is a quick and efficient tool to help you estimate the growth of your investments. You can easily calculate the potential returns by inserting key details like the principal amount, interest rate, and time period, helping you make informed financial decisions.
Frequently Asked Questions
Does HDFC provide compound interest?
Yes, HDFC provides compound interest on certain financial products like fixed deposits and savings accounts, where interest is compounded periodically (monthly, quarterly, or annually) based on the terms of the investment option.
How to calculate compound interest for 2 years?
For a 2-year investment, plug the values into the compound interest formula: A=P(1+r/n)^nt, where P is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the time period.
Can I calculate EMI on the HDFC compound interest calculator?
No, the HDFC Compound Interest Calculator is designed for compound interest calculations. To calculate EMIs, you should use an EMI calculator, which considers factors like loan amount, interest rate, and loan tenure.
What is the HDFC Compound Interest Calculator?
The HDFC Compound Interest Calculator helps calculate the interest earned on investments based on compound interest formulas.
How does the compound interest formula work?
The formula for compound interest is A=P(1+r/n)^nt, where P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the time period.
What inputs are required for the HDFC compound interest calculator?
You need to enter the principal amount, interest rate, compounding frequency, and the investment period to calculate the compound interest using an HDFC compounding calculator.
Is the calculator free to use?
Yes, the HDFC Compound Interest Calculator is available online for free at Policybazaar.
What is the difference between compound and simple interest?
Compound interest calculates interest on both the initial principal and accumulated interest, whereas simple interest is only on the principal.
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
Past 10 Years' annualised returns as on 01-12-2024
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).
Generate wealth Earn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D))
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