Compound Interest Calculator
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How Compound Interest Works
Compound interest is the interest you earn on both your original money and on the interest you keep accumulating. It is the reason why investing early pays off — your money grows exponentially over time. Albert Einstein reportedly called compound interest the "eighth wonder of the world."
Example: If you invest $10,000 at 7% annual return and add $500/month for 20 years, you will have approximately $280,000+ — but you only contributed $130,000 of your own money. The other $150,000 came from compound growth.
Key takeaway: Start early, be consistent, and let time do the heavy lifting. Even small monthly contributions add up dramatically over decades.