See how your investments grow over time with the power of compound interest and regular contributions.
Enter your investment details to see how compound interest works its magic over time.
Compound interest is interest earned on both your initial investment and previously earned interest. It's powerful because your money grows exponentially over time - you earn interest on your interest, creating a snowball effect.
More frequent compounding leads to higher returns, but the difference becomes marginal. Daily compounding offers the best returns, followed by monthly, quarterly, and annual. However, the impact is usually small compared to the interest rate itself.
Historical stock market returns average around 7-10% annually, but this varies significantly. Conservative investments like bonds might yield 2-5%, while high-risk investments could potentially yield more. Always consider your risk tolerance and diversify your portfolio.