Compound Interest Calculator

Compound interest is often called the "snowball effect" because, like a snowball rolling down a hill, your wealth grows larger and faster the longer it rolls.

Why Frequency Matters

The number of times interest is calculated per year (the compounding frequency) significantly affects the final amount.

• Daily Compounding: Best for savings. Your money grows every single day.
• Monthly: Standard for most bank accounts and mortgages.
• Annually: Common for long-term investment estimates.

Example: $10,000 at 5% for 10 years earns $16,288 with annual compounding, but $16,486 with daily compounding. That's nearly $200 free just for changing the math!

The Rule of 72

A quick mental math trick: Divide 72 by your interest rate to see how many years it takes to double your money.
At 10% interest: 72 / 10 = 7.2 years to double.