Choose your compounding frequency, see the gap against simple interest, and — the part most calculators skip — what the final amount is actually worth in today’s money after inflation.
A number that grows is not the same as a number that gains purchasing power.
The same nominal rate pays differently depending on how often it compounds. 8% compounded quarterly is an effective 8.24%; compounded monthly it is 8.30%. Over long periods that gap is real money. Indian bank FDs almost always compound quarterly, which is why we default to it.
Simple interest pays only on the principal. The difference between the two lines is the entire value of compounding — and it is invisible in the early years, then accelerates. Seeing both side by side is the clearest argument for starting early.
₹10 lakh in 20 years at 6% inflation buys what about ₹3.1 lakh buys today. If your return barely beats inflation, you have preserved capital but not built wealth. The real-value line is there to make that visible — and it is why a 7% deposit in a 6% inflation environment is a much weaker product than it sounds.
