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BBI

📈 Compound Interest Calculator

A compound interest calculator shows how money grows when interest is earned on both your original deposit and the accumulated interest. Enter a principal, interest rate, compounding frequency, and time horizon to see the power of compounding — the "eighth wonder of the world."

🇺🇸 Calculating for United States
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Investment details

Future value after 20 years

$144,572.72

Assumes 7% annual return, compounded monthly

Total deposited

$58,000.00

Interest earned

$86,572.72

Growth multiple

2.49×

Growth over time — deposits vs interest earned

7% annual return, compounded monthly

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Frequently asked questions

What is compound interest?
Compound interest is interest calculated on the initial principal AND the interest already earned. This causes exponential growth over time, unlike simple interest which only applies to the principal.
What is the compound interest formula?
A = P(1 + r/n)^(nt), where A = final amount, P = principal, r = annual rate, n = compounds per year, t = years.
What is the Rule of 72?
Divide 72 by your annual interest rate to estimate how many years it takes to double your money. At 6%, money doubles in about 12 years.

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Disclaimer: This calculator is for informational and educational purposes only. Results are estimates and not financial advice. Consult a licensed financial advisor before making financial decisions.