Compound Interest Calculator - ICICI Bank

The Compound Interest Calculator - ICICI Bank is an efficient tool that enables individuals to calculate the growth of their investments over time. By using this calculator, users can estimate the returns on their investments by factoring in parameters like the principal amount, tenure, interest rate, and compounding frequency.

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9.7 Crore

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Policies Sold

Disclaimer: #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 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

What is a Compound Interest Calculator - ICICI Bank?

The ICICI Bank Compound Interest Calculator is an online tool designed to compute the total earnings on your investments by leveraging the power of compounding. Unlike simple interest, compound interest works by adding accumulated interest to the principal, leading to accelerated growth of your funds. This tool is particularly beneficial for investors aiming for precise financial planning.

Key Features

Easy-to-Use Interface: Provides a user-friendly experience for quick calculations.
Customisable Inputs: Users can adjust variables such as principal, interest rate, and duration.
Real-Time Results: Delivers instant and accurate calculations.

Power of Compounding Calculator

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YOU GET

Investing Amount

₹500 ₹150,000

Invest for (in years)

Stay invested for (in years)

Interest rate

1% 25%

Sensex has given 10% return from 2010-2020

Uses of a Compound Interest Calculator - ICICI Bank

Investment Forecasting: Enables users to predict the future value of their investments.
Comparison Tool: Helps compare different savings and deposit options offered by ICICI Bank.
Educational Utility: Aids in understanding the benefits of compounding over time.

Steps to Use an Online ICICI Bank Compound Interest Calculator by Policybazaar

Follow these steps to use the Policybazaar Compound Interest Calculator for ICICI Bank:

Enter Principal Amount: Input the initial investment or savings amount.
Select Investment Tenure: Specify the duration of the investment.
Input Interest Rate: Enter the annual interest rate applicable to your deposit.
Choose Compounding Frequency: Select how often interest is compounded (e.g., annually, semi-annually, quarterly, or monthly).
Click on the 'Calculate' Button: Instantly view the calculated maturity amount, total interest earned, and total invested amount.

How Does an ICICI Bank Compound Interest Calculator Work?

The compounding calculator by ICICI Bank uses a standard formula for calculating compound interest:

Example Calculation:

If you invest ₹2,00,000 in a lump sum for 4 years with an annual interest rate of 10%, the returns will be as follows:

Year	Principal Amount (P)	Interest Compounding Formula	Total Compounded Amount (A)	Total Compound Interest (CI)
1 Year	₹2,00,000	A = 2,00,000 (1+ 10/100)^1	₹2,20,000	CI= ₹20,000
2nd Year	₹2,20,000	A= 2,20,000 (1+10/100)^1	₹2,42,000	CI= ₹22,000
3rd Year	₹2,42,000	A= 2,42,000 (1+ 10/100)^1	₹2,66,200	CI= ₹24,200
4th Year	₹2,66,200	A= 2,66,200 (1+ 10/100)^1	₹2,92,820	CI= ₹26,620

So,

Total amount earned at the end of the 4-year period = ₹2,92,820 (almost 1.5 times of the invested amount).
Total compound interest earned = ₹20,000 + ₹22,000 + ₹24,200 + ₹26,620 = ₹92,820.

As seen in this example, calculating compound interest manually can be complex; hence a calculator is very helpful.

Benefits of Compound Interest Calculator - ICICI Bank

Below are the benefits of ICICI Bank Compound Interest Calculator:

Saves Time: Reduces the effort involved in manual calculations.
Accurate Results: Provides precise figures, ensuring clarity for better decision-making.
Accessible Anytime: Available online for use from anywhere.
Improves Financial Planning: Supports users in setting realistic financial goals.

Conclusion

The ICICI Bank Compound Interest Calculator by Policybazaar is an invaluable resource for individuals seeking to optimise their savings and investments. By simplifying the process of calculating compound interest, this tool helps users make informed decisions, ensuring their financial plans are aligned with their goals. Whether for short-term savings or long-term wealth creation, this calculator serves as a trusted companion for effective financial management.

FAQs

What is the formula used by the ICICI Bank Compound Interest Calculator?
The calculator uses the standard formula:
A=P(1+r/n)ntA = P (1 + r/n)^{nt}A=P(1+r/n)nt
Where:
- A = Maturity amount
- P = Principal amount
- r = Annual interest rate (in decimal)
- n = Compounding frequency per year
- t = Time in years
Can this calculator be used for recurring deposits?

Yes, the calculator can be used for both fixed and recurring deposits.
Is the ICICI Bank Compound Interest Calculator free to use?

Yes, the calculator is free and available online.
Does it include tax implications in the calculations?

No, the calculator focuses only on gross returns and does not factor in taxes.
How does the frequency of compounding affect returns?

Higher compounding frequencies, such as monthly or quarterly, yield greater returns compared to annual compounding.

˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. 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. 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 01-03-2025

^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).

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