What is Compound Interest?
Compound interest means your investment earns interest — and then that interest also earns interest. Over time, this creates powerful growth.
Example:
If you invest $1,000 at 10% annual interest, compounded yearly:
- After 1 year: $1,100
- After 2 years: $1,210
- After 3 years: $1,331
- After 10 years: $2,593.74
Why it matters:
The longer you leave your investment, the faster it grows. Compound interest is a key principle behind smart investing.
Try the calculator below and see the results for yourself!