Compounding Calculator
Watch small differences in return create enormous gaps over decades. Compounding is the most powerful force in investing — and the most underappreciated.
New to this concept? Learn about Compounding →What this means
Compounding means your returns earn returns. The first year, you earn returns on your initial investment. The second year, you earn returns on your initial investment plus last year's returns. This snowball effect accelerates over time.
The key insight: time is your greatest asset. The difference between investing for 20 years and 30 years is not 50% more — it can be double or more, because compounding accelerates in the later years.
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