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
Results
Investment Breakdown
Future Value
"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?
Related Content
Getting a Head Start on College Savings
A few strategies that may help you prepare for the cost of higher education.
Should You Borrow from Your 401(k)?
Does it make sense to borrow from my 401(k) to pay off debt or to make a major purchase?
Understanding ETFs: Building Blocks of Modern Investing
Educational ETF infographic explaining benefits, types & mechanics. Features current statistics and citations.