The Unstoppable Mathematics of Compound Interest
Albert Einstein famously called compound interest the eighth wonder of the world: "He who understands it, earns it; he who doesn't, pays it." Unlike simple interest, which only grows on your original principal, compound interest generates earnings on both your principal and all previous accumulated interest.
Frequently Asked Questions
The Rule of 72 is an easy way to calculate how long it takes to double your money. Divide 72 by your annual interest rate. For example, at 10% returns, your portfolio doubles every 7.2 years.
While your bank statement shows nominal dollars, inflation reduces what those dollars can buy. Our calculator factors in a customizable annual inflation rate (typically 2.5% - 3%) so you see your real purchasing power in today's money.