Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” - Albert Einstein
Discover the power of compound interest with our specialized and intuitive calculator!
| # | Values |
|---|---|
| Total of Investment | $ 1.000,00 |
| Total of Interest | $ 1.000,00 |
| Total | $ 1.000,00 |
Compound Interest
Compound interest is like a snowball of money growing over time. When you invest money and earn interest, that interest is added to the original amount. Then, in the next periods, you earn interest on both the original money and the interest that has already been added.
This causes your money to grow faster than simply earning interest on the initial amount, as your money works for you and grows exponentially over time.
Example: Monthly contributions of $ 500.00 with an interest rate of 1% per month
| Investment Period | Total Invested | Total Returns | Total Accumulated |
|---|---|---|---|
| 6 months | $ 3,000.00 | $ 76.01 | $ 3,076.01 |
| 1 year | $ 6,000.00 | $ 341.25 | $ 6,341.25 |
| 5 years | $ 30,000.00 | $ 10,834.83 | $ 40,834.83 |
| 10 years | $ 60,000.00 | $ 55,019.34 | $ 115,019.34 |
| 20 years | $ 120,000.00 | $ 374,627.68 | $ 494,627.68 |
This is the power of compound interest — over time, the returns begin to exceed the amount invested. Make your simulations with different amounts, interest rates, and investment periods.
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