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Monthly Interest Calculator
Interest compounded every month.
Enter values to see your result
Frequently asked questions
Which FDs use monthly compounding?
Traditional bank FDs compound quarterly; NRE/NRO FDs and some corporate deposits compound monthly. For monthly-interest-payout FDs, interest is NOT reinvested — it's paid out.
Monthly vs quarterly compounding?
Monthly gives a slightly higher effective rate. At 7% nominal: monthly APY = 7.23%, quarterly APY = 7.19%. Small edge, but compounds over long tenures.
When is monthly compounding best?
When interest is reinvested (not paid out) and you hold long-term. For short-term holdings (<1 year), the difference vs other frequencies is negligible.
Does this match my bank's calculation?
If your FD reinvests monthly, yes. If it pays monthly interest out separately, the payout amount is the monthly rate × principal; the principal doesn't grow.