Investment Calculator
See the power of compound interest. Calculate how your savings grow over time.
Future Value
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The Power of Compound Interest
Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. As Albert Einstein supposedly said, "Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it."
Why Start Investing Early?
Exponential Growth
The longer your money stays invested, the more time it has to compound. Small monthly contributions made in your 20s can grow significantly larger than much larger contributions made in your 40s.
Market Consistency
Historically, long-term investments in diversified markets (like the S&P 500) have provided consistent returns. While markers fluctuate in the short term, they have historically trended upward over decades.
How to Use the Investment Calculator
1. **Initial Investment:** The starting amount you have to invest.
2. **Monthly Contribution:** How much you plan to add to your investment each month.
3. **Expected Return:** Your estimated annual growth rate (e.g., 7-10% for stock markets).
4. **Investment Duration:** How many years you plan to stay invested.
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