Compound Interest Calculator
See exactly how much your money can grow. Spoiler: it's more than you think.
After 30 years
That's 4.2x your money!
How compound interest works
Compound interest is often called the eighth wonder of the world — and for good reason. Unlike simple interest, which only earns returns on your initial deposit, compound interest earns returns on your returns. Your money makes money, and then that money makes more money. The longer you stay invested, the faster it snowballs.
When you invest a fixed amount every month (dollar-cost averaging), you benefit twice: from compound growth and from buying more shares when prices are low. This powerful combination is how ordinary people build extraordinary wealth over time.
The key variables are time, consistency, and rate of return. Even $200/month can grow to over $500,000 in 30 years at 8% returns. Starting at 25 instead of 35 can literally double your retirement wealth. The best time to start was yesterday. The second best time is right now.