Compound interest chart

Compound interest refers to reinvesting the money you earned from your initial investment. The interest you earn each year is added to your original balance, which you then continue to earn interest on. Your balance grows at an increasing rate. The following example will show you exactly what kind of effect compound interest can have on your money: #infographics

Compound Interest Explained

With the compound interest calculator, you can accurately predict how profitable certain investments will be for your portfolio.

Understanding how compound interest works can show you how time works to your advantage, encouraging you to save early and often. Still, not many do that!

Compound interest is the phenomenon that allows seemingly small amounts of money to grow into large amounts over time. Compound interest essentially means "interest on the interest" and is the reason many investors are so successful.

Einstein described compound interest as the eighth wonder of the world, and he was right. Just make sure you're earning it and not paying it.