See how your savings or investments grow over time with compound interest. Supports monthly contributions, different compounding frequencies, and inflation adjustment.
Compound interest is interest earned on both your initial principal and the interest that has already accumulated. It causes your savings to grow exponentially over time, Einstein allegedly called it "the eighth wonder of the world."
More frequent compounding yields slightly more growth. Daily compounding on a 7% rate earns about 0.05% more per year than annual. It matters more at higher rates and longer terms.
Historically, a diversified S& 500 index fund has averaged about 10% nominal annual return before inflation, or ~7% after inflation. High-yield savings accounts currently pay 4-5%. Use a conservative estimate.