Compound Interest Calculator
Investment Growth Analysis
Future Value: $0.00
Total Contributions: $0.00
Interest Earned: $0.00
Effective Annual Rate: 0.00%
Understanding Compound Interest
Compound interest is the interest earned on both your initial investment and previously accumulated interest. This powerful concept helps your money grow exponentially over time.
Key Components
Investment Factors
- Principal Amount
- Interest Rate
- Compounding Frequency
- Time Period
- Regular Contributions
Types of Compounding
- Daily Compounding
- Monthly Compounding
- Quarterly Compounding
- Annual Compounding
Investment Applications
- Retirement Planning
- Savings Goals
- Education Funds
- Investment Growth
- Wealth Building
The Power of Time
- Early Investment Benefits
- Long-term Growth
- Rule of 72
- Time Value of Money
Frequently Asked Questions
What is compound interest?
Compound interest is interest earned on both your initial investment and accumulated interest, creating exponential growth over time.
How does compounding frequency affect returns?
More frequent compounding periods result in higher returns, as interest is earned on interest more often.
What is the Rule of 72?
The Rule of 72 is a simple way to determine how long it will take for an investment to double. Divide 72 by the annual interest rate to estimate the years needed.
Investment Disclaimer
This calculator provides estimates only. Actual returns may vary based on market conditions, fees, and other factors. Consult with a financial advisor for investment advice.