Compound Interest Calculator - About


Compound interest is a concept in finance where the interest earned on an investment or loan is calculated not only on the initial amount (principal) but also on the accumulated interest from previous periods. In simpler terms, it's interest that earns interest over time. This leads to exponential growth of the investment or debt.


Use the Compound Interest Calculator to see how the numbers work in your favor.


Here's a breakdown of how compound interest works:


The formula to calculate the future value of an investment with compound interest is:

Where:


Key takeaways about compound interest:


In financial planning and investing, understanding compound interest is crucial because it demonstrates the value of starting to invest early and the benefits of long-term investing. It's a powerful force that can significantly impact your financial future!



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