Get the complete month-by-month Excel Spreadsheet & PDF Report for this simulation.
Compound interest is the interest you earn on interest. This creates a snowball effect where your wealth grows exponentially over time. Unlike simple interest, which only calculates returns on your initial principal, compounding includes all accumulated interest from previous periods.
Planning your long-term financial goals requires precise tracking. By consistently adding monthly contributions to your initial investment, you can leverage time to build a robust retirement fund, passive income stream, or emergency cash reserve.