Compound Interest Calculator

Discover the power of compound interest and see how your investments can grow over time with regular contributions and reinvested earnings.

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Enter your initial investment, expected return rate, and contribution schedule to see your potential growth.

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How often interest is calculated and added to your balance

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Understanding Compound Interest

Compound interest is often called the “eighth wonder of the world” because it allows your money to grow exponentially over time.

  • Interest on Interest: You earn returns not just on your original investment, but also on previously earned interest
  • Time is Key: The longer you invest, the more powerful compounding becomes
  • Regular Contributions: Adding money regularly accelerates your wealth building
  • Higher Frequency: More frequent compounding (daily vs. annually) increases your returns

Investment Tips

  • Start Early: Even small amounts can grow significantly with time
  • Be Consistent: Regular contributions are more important than large one-time investments
  • Reinvest Dividends: Let your earnings compound by reinvesting them
  • Stay Patient: Compound interest works best over long periods
  • Consider Tax-Advantaged Accounts: ISAs, pensions, and other accounts can boost your returns
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