How Compound Interest Works
Compound interest can have a dramatic effect on the growth of an investment. Use this calculator to illustrate the potential impact of compound interest on the future value of your assets.
Investment Details
Results
Investment Breakdown
Future Value
"Compound interest is the eighth wonder of the world. He who understands it, earns it…he who doesn't, pays it."
- Albert Einstein
This is a hypothetical example used for illustrative purposes only. It is not representative of any specific investment or combination of investments. This worksheet provides estimates based on certain assumptions. It is not intended to provide specific investment advice. The results are not a guarantee of performance or specific investment advice. The rate of return on investments will vary over time, particularly for longer-term investments. Investments that offer the potential for high returns also carry a high degree of risk. Actual returns will vary.
Have A Question About This Topic?
Related Content
The Power of Interest - How Long Will it take My Money to Do
Use the Rule of 72 to estimate how long it takes your money to double at a given rate.
Global vs. International: What’s the Difference?
International funds invest in non-U.S. markets, while global funds may invest in U.S. stocks alongside non-U.S. stocks.
Retiring Earlier Than Expected? What To Know
Retiring earlier than expected can be disheartening. Learn steps that can help you smoothe the road ahead.