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
Tax Rules When Selling Your Home
The tax rules governing profits you realize from the sale of your home have changed in recent years.
Inflation and the Real Rate of Return
Learn about the role of inflation when considering your portfolio’s rate of return with this helpful article.
Capital Gains Tax When Selling Your Home
If your clients are buying or selling a home, use this to help them determine if they qualify for capital gains taxes.