Understanding Compound Interest: The Power of Starting Early

Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. The formula is: A = P × (1 + r/n)^(nt) where A is the final amount, P is principal, r is annual interest rate, n is compounding frequency per year, and t is time in years.

Starting 10 years earlier can more than double your final investment value. Use our compound interest calculator to model different scenarios and understand the true cost or benefit of any financial decision over time.