The 8th Wonder of the World
Albert Einstein reportedly called compound interest the "eighth wonder of the world." He said, "He who understands it, earns it... he who doesn't, pays it." Compounding occurs when the interest you earn on your money is added to the principal, and then that new total earns interest too.
The Cost of Delay
Time is your most valuable asset.
Waiting even 5 or 10 years to start investing can drastically reduce your final result. Because the curve gets steeper at the end, the last 10 years of a 30-year journey often produce more growth than the first 20 years combined.
Investing FAQs
Does this account for inflation?
No. This shows nominal value. To see 'inflation-adjusted' returns, subtract 2-3% from your expected interest rate.
What is the 'Rule of 72'?
A quick way to estimate when your money will double. Divide 72 by your interest rate. (e.g., at 7%, your money doubles every ~10 years).
Should I invest if I have debt?
Generally, if your debt's interest rate is higher than your expected investment return (e.g., credit card debt at 20%), pay the debt first.
Financial Disclaimer
This calculator is for educational purposes only. Market returns are never guaranteed, and past performance is not indicative of future results. Always conduct your own research or consult with a licensed financial advisor.