What is Compound Interest? A Complete Guide
Compound interest, called the eighth wonder of the world by Einstein, is key to building wealth.
What is Compound Interest?
Earning interest on your interest. Each period, interest is added to principal, creating exponential growth.
Formula: A = P x (1 + r/n)^(nt)
Power of Time
$10,000 at 10%: 5yr = $16,100, 10yr = $25,900, 20yr = $67,300, 30yr = $174,500. Starting 5 years earlier can double your returns.
Online 🧮 Compound Interest Calculator
Free to use, no download required