Compound Interest Calculator
Principal ($)
Annual Rate (%)
Compounding
Years
Monthly Contrib ($)
Compound interest earns returns on both principal and previously earned interest. The frequency of compounding (annual, monthly, daily) affects the effective annual rate (EAR), with more frequent compounding yielding slightly higher returns.
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Pro Tip
The Rule of 72: divide 72 by the interest rate to find how many years to double your money. At 7%, money doubles every ~10.3 years.
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Did You Know?
Albert Einstein reportedly called compound interest the "eighth wonder of the world" — though historians debate whether he actually said this.
References
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