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Financial

Compound Interest

Grow investments with compounding — with monthly contributions.

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Compound Interest

How to Use the Compound Interest

Enter your initial investment, monthly contribution, time horizon, and expected interest rate to project your wealth.

The Power of Compound Interest

Compound interest is the interest on savings calculated on both the initial principal and the accumulated interest from previous periods. It causes wealth to grow exponentially.

Formula

A = P(1 + r/n)^(nt)

Frequently Asked Questions (FAQ)

Why is compounding important?
It allows your money to work for you. Over long periods, the interest earned exceeds the actual principal invested.

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