Compound Interest

Harness the power of compounding

What is Compound Interest?

Compound interest is interest earned on both your initial investment and previously earned interest. It's often called the "eighth wonder of the world" because of its powerful wealth-building effects.

The key to compound interest is time - the longer your money compounds, the more it grows exponentially.

How Compound Interest Works

Example:

Invest $1,000 at 7% annual return:

  • Year 1: $1,070
  • Year 10: $1,967
  • Year 20: $3,870
  • Year 30: $7,612
  • Year 40: $14,974

With compound interest, your money grows faster over time!

Compound Interest Calculator

The Power of Starting Early

Starting at Age 25

Save $200/month for 40 years at 7%:

$525,000

Starting at Age 35

Save $200/month for 30 years at 7%:

$244,000

Starting just 10 years earlier more than doubles your wealth!

Maximizing Compound Interest

1

Start Early

Time is your greatest asset with compound interest.

2

Invest Regularly

Consistent contributions amplify compound growth.

3

Reinvest Dividends

Let your earnings generate more earnings.

4

Avoid Withdrawals

Don't interrupt the compounding process.

Latest Compound Interest Insights

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