The basic idea
Compound interest applies growth to both the original principal and previously accumulated growth.
Why time matters
Because each period can build on the balance from earlier periods, longer time horizons can change results materially.
Use estimates carefully
Actual savings and investments can include changing rates, fees, taxes, deposits, withdrawals, and market risk.
Related working tools
Money
Compound Interest Calculator
Calculate compound growth using a selected compounding frequency.
Open tool → MoneySavings Calculator
Estimate future savings with a starting balance, recurring monthly contributions, and compound interest.
Open tool → MoneyROI Calculator
Calculate return on investment as a percentage of the original cost.
Open tool →