Compound interest

Your money earns interest, and then that interest earns interest too — creating exponential growth over time.

Parameters

$10,000
7%
20 years
$200 / mo
Final balance
—
Total deposited
—
Interest earned
—
Compound growth Total deposited

How it works

Formula: A = P × (1 + r/n)^(n×t)
P = principal  ·  r = annual rate  ·  n = compounds per year  ·  t = time in years
Rule of 72 — divide 72 by your rate to estimate how long it takes your money to double.
≈ 10 yrs to double