Discover the power of compound interest and watch your investments grow over time
Enter your investment parameters and click "Calculate My Wealth" to see your results!
| Year | Total Invested | Interest Earned | Total Value | Growth % |
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Compound interest is the interest calculated on the initial principal and also on the accumulated interest from previous periods. It's often called "interest on interest" and can make a sum grow faster than simple interest, which is calculated only on the principal amount.
The Formula:
A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)]
Where:
• A = Final amount
• P = Principal (initial investment)
• PMT = Monthly payment
• r = Annual interest rate (as decimal)
• n = Number of times interest compounds per year
• t = Number of years
Time is Your Best Friend: The earlier you start investing, the more time your money has to grow through compound interest. Even small amounts invested regularly can grow into substantial wealth over decades.
Example:
• Starting at 25: Investing $200/month at 7% for 40 years = $525,000
• Starting at 35: Investing $200/month at 7% for 30 years = $244,000
Key Benefits:
✓ Automate your savings
✓ Take advantage of dollar-cost averaging
✓ Reduce the impact of market volatility
✓ Build wealth gradually and consistently
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