Compound Interest Calculator

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. Often called "interest on interest," it can make your money grow much faster than simple interest. This calculator helps you visualize that growth.

Understanding Compound Interest

• The "Magic" of Time: The longer your money is invested, the more significant the effect of compounding becomes. Starting early is your biggest advantage.
• Frequency Matters: The more frequently interest is compounded (e.g., monthly vs. annually), the faster your investment will grow, as you start earning interest on your interest sooner.
• Rule of 72: A quick way to estimate how long it will take to double your money is to divide 72 by your annual interest rate. For example, at an 8% return, your money will roughly double every 9 years (72 / 8 = 9).