Compound Interest Calculator

Discover the power of compound interest. Calculate how your investments grow over time with regular contributions and different compounding frequencies.

Investment Details

Compound Frequency Impact

Daily Compounding

Interest calculated and added 365 times per year. Highest growth potential.

Monthly Compounding

Interest calculated 12 times per year. Good balance of growth and simplicity.

Annual Compounding

Interest calculated once per year. Simplest but lowest growth.

Investment Tips

  • Start investing early to maximize compound growth
  • Make regular contributions to accelerate growth
  • Reinvest dividends and interest for compounding
  • Higher compound frequency increases returns
  • Be patient - compound interest takes time

Understanding Compound Interest

The Magic Formula

  • Compound interest earns interest on interest
  • Time is your greatest ally in wealth building
  • Regular contributions amplify the effect
  • Higher rates and frequency increase returns

Investment Strategies

  • Dollar-cost averaging reduces risk
  • Diversify your investment portfolio
  • Consider tax-advantaged accounts
  • Review and rebalance regularly