See how your money grows over time with the power of compound interest.
Ready to start investing?
Open Free AccountCompound interest is often called the eighth wonder of the world. It means your investment returns generate their own returns, creating a snowball effect over time. A $10,000 investment growing at 10% annually becomes $10,000 in the first year, $11,000 the next, then $12,100, and so on — each year the growth accelerates because it's calculated on a larger base.
The two most powerful factors in compound growth are time and consistency. Starting early — even with smaller amounts — dramatically outperforms starting later with larger amounts. And adding monthly contributions amplifies the effect significantly.
This calculator assumes annual compounding and a fixed rate of return. Real market returns vary year to year. The S&P 500 has historically returned approximately 10% per year on average, though individual years range from significant losses to major gains. Use this tool as a projection, not a guarantee. Browse our stock directory to start researching investments.