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Compound Interest

Calculate how your investment grows with compound interest. See the power of compounding over time.


Investment Details


About Compound Interest

Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods.

Formula: A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)]

Where:
  • A = Final amount
  • P = Principal (initial investment)
  • r = Annual interest rate (decimal)
  • n = Number of times interest compounds per year
  • t = Time in years
  • PMT = Monthly contribution

The Power of Compounding

Frequency Matters

  • More frequent compounding = Higher returns
  • Daily compounding yields more than annual
  • Effect is more noticeable with higher rates

Time is Your Friend

  • Start investing early for maximum growth
  • Regular contributions accelerate growth
  • Even small amounts compound significantly over time

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