The Power of Compound Interest: One Table to See It Grow
Compound interest is 'interest earning interest.' The formula A = P(1+r/n)^(nt), where P is principal, r is annual rate, n is compounding frequency, and t is years.
Time is the strongest lever
Invest 1,000/month at 6% annual for 20 years: principal is 240k, but principal + interest may approach 460k — most of the excess is pure compounding.
Three things that boost returns
- Start early so time works for you
- Contribute more often for denser compounding
- Control fees — small cuts mean huge long-term differences
💡 Toggle different terms in the compound interest calculator to feel how 'starting 5 years late' costs you.