Calculate how your investments or savings grow with the power of compounding.
Compound interest means you earn interest not just on your initial investment, but also on the interest you've already earned. Over time, this creates an exponential growth effect often called "the snowball effect." Albert Einstein reportedly called it the eighth wonder of the world.
The more frequently interest compounds, the more you earn. Daily compounding yields slightly more than monthly, which yields more than annually. For most savings accounts and investments, monthly or daily compounding is standard.
A quick mental shortcut: divide 72 by your annual interest rate to find roughly how many years it takes to double your money. At 7% annual return, your investment doubles approximately every 10.3 years (72 ÷ 7 = 10.3).
Adding even a small monthly contribution dramatically accelerates growth. The calculator above shows the combined effect of your initial investment plus ongoing contributions — use it to model different scenarios for your savings plan.