Compound Interest Calculator
Understanding Compound Interest
Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods.
The Power of Compounding
The compound interest formula: A = P(1 + r/n)^(nt)
💡 Tips
- Start early - time is the most powerful factor in compounding
- Even small regular contributions add up significantly
- The rule of 72: divide 72 by your rate to estimate doubling time
- Compound frequency matters: daily > monthly > annually