Compound Interest Calculator
Calculate how your investments grow over time with compound interest
Understanding Compound Interest
What is Compound Interest?
Compound interest is when you earn interest not only on your initial investment but also on the accumulated interest from previous periods. This creates a snowball effect that can significantly accelerate your wealth growth over time.
The Power of Time
The longer you let your money grow, the more powerful compound interest becomes. This is why starting to invest early is so important - it gives your money more time to compound and grow.
How Compounding Frequency Affects Growth
The more frequently interest is compounded (daily vs. monthly vs. annually), the faster your money will grow. This is because you're earning interest on your interest more often.