How Compound Interest Works

Compound interest can have a dramatic effect on the growth of an investment. Use this calculator to illustrate the potential impact of compound interest on the future value of your assets.

Investment Details

$0$500,000
$0$50,000
1100

Results

Investment Breakdown

$68,857
Future Value

Future Value

$0
Total Contributions
$0
Total Interest Earned
$0

"Compound interest is the eighth wonder of the world. He who understands it, earns it…he who doesn't, pays it."

- Albert Einstein

This is a hypothetical example used for illustrative purposes only. It is not representative of any specific investment or combination of investments. This worksheet provides estimates based on certain assumptions. It is not intended to provide specific investment advice. The results are not a guarantee of performance or specific investment advice. The rate of return on investments will vary over time, particularly for longer-term investments. Investments that offer the potential for high returns also carry a high degree of risk. Actual returns will vary.

Have A Question About This Topic?

Thank you! Oops!

Learn How to Avoid These 6 Common Tax Errors

Knowing how you need to file your taxes depends on your income and filing status, as well as which deductions and credits you can claim. In this free ebook, we share some common errors to avoid.



Thank you! Oops!

Related Content

Building Your Legacy

Building Your Legacy

A four-step framework for building a personal legacy.

The History of Currency

The History of Currency

Currency has been around for a long time. Here's a quick history lesson.

Your DNA Test

Your DNA Test

A Detailed Needs Analysis (DNA) can be a simple way to care for loved ones, no matter what the future may hold.