Compound Interest Calculator

Compound Interest Formula

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

Where: A = Final amount, P = Principal, r = Annual rate, n = Compounds/year, t = Years

The Power of Compounding

Albert Einstein allegedly called compound interest "the eighth wonder of the world." The earlier you start investing, the more dramatic the growth — your earnings generate their own earnings, creating exponential growth over time.

• $10,000 at 7% for 30 years = $76,123 without adding a penny
• $10,000 + $500/mo at 7% for 30 years = $566,755
• The S&P 500 has averaged ~10% annual returns over 50+ years

Investment Tips

• Start early — time is more important than amount
• Consistent contributions beat lump sums (dollar-cost averaging)
• Reinvest dividends to maximize compounding
• Even 1% difference in fees can cost thousands over decades