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Compound Interest Calculator

See how your savings and investments can grow with the power of compounding.

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Understanding Compound Interest

Often called the "eighth wonder of the world," compounding can be the most powerful force in your financial life.

What it is

Compound interest is the interest earned on both your initial investment (the principal) and the accumulated interest from previous periods. In simple terms, it's "interest on interest."

Why it matters

It makes your money work for you, accelerating its growth over time. The longer your money is invested, the more significant the effect of compounding becomes.

Frequency

The more often interest is compounded (e.g., monthly vs. annually), the more interest you'll earn. This calculator lets you see the difference frequency can make.

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