What Is Compound Interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest — which is calculated only on your original deposit — compound interest lets your money earn interest on its interest, creating an exponential growth curve over time. Illustrative assumptions. Rates are constant; results are not a forecast.
Initial Investment (Principal)
P = Initial Investment (Principal)
Annual Interest Rate (%)
Illustrative assumptions. Rates are constant; results are not a forecast.
Compounding Frequency
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest — which is calculated only on your original deposit — compound interest lets your money earn interest on its interest, creating an exponential growth curve over time.
Monthly Contribution
Monthly contributions earn the equivalent monthly yield. Tax is applied once to positive gains at the end; fees are excluded.
Investment Period
Project growth · Year-by-Year Breakdown