Compound Interest Calculator
Albert Einstein called it "the eighth wonder of the world." See how small, consistent monthly contributions can grow into a massive fortune over time through the power of compounding.
Investment Plan
Future Value
Don't forget the tax man
Investment gains are taxable. Use our tax calculator to estimate your real net profit.
The Rule of 72
Want to know when your money will double? Divide 72 by your interest rate. (e.g., 72 / 8% = 9 Years). It's a quick way to estimate growth without a calculator.
Start Early
Time is your biggest asset. Investing $500/month starting at age 25 yields significantly more than investing $1,000/month starting at age 45.
Consistency Wins
You don't need to be rich to start. Regular monthly contributions (Dollar Cost Averaging) often outperform trying to 'time the market'.
Investing FAQs
Q.What is the difference between Simple and Compound Interest?
Simple interest is calculated only on your initial deposit (Principal). Compound interest is calculated on the Principal PLUS all the accumulated interest from previous periods. This 'interest on interest' causes your money to grow exponentially.
Q.What is a realistic rate of return for the stock market?
Historically, the S&P 500 has returned about 10% annually on average. However, when adjusting for inflation, a conservative estimate for long-term planning is typically 7-8%.
Q.How does the frequency of compounding affect my return?
The more frequently interest is compounded (e.g., daily vs. annually), the faster your money grows. Most savings accounts compound daily or monthly, while many bonds compound semi-annually.
Q.What is the Rule of 72?
The Rule of 72 is a quick mental math shortcut. Divide 72 by your expected interest rate to see how many years it will take to double your investment. (Example: 72 / 8% return = 9 years to double).
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View Finance HubThe Rule of 72: How to Double Your Money Without Working
Einstein called compound interest the 'eighth wonder of the world.' Learn the Rule of 72 and use our calculator to see how small contributions grow into millions.
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