Question 1

Which compounding frequency gives the highest return?

Accepted Answer

For the same nominal annual rate, more frequent compounding gives a slightly higher maturity amount. Daily is usually highest, followed by monthly, quarterly, and annual.

Question 2

Is compound interest the same as CAGR?

Accepted Answer

CAGR measures annualized growth between two values, while compound interest estimates future value from principal, rate, time, and compounding frequency.

Question 3

Does this calculator include recurring deposits?

Accepted Answer

No. This calculator handles one principal amount. Use SIP or recurring deposit logic for regular monthly contributions.

Question 4

Why do monthly and quarterly results differ?

Accepted Answer

Monthly compounding adds interest to principal more often than quarterly compounding, so interest starts earning interest sooner.