Compound interest simulator
0 $
0 $ of interest
0 $ invested
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After a % , the total capital will be 0 $.
With an initial capital of 0 $, a monthly investment of 0 $, for 0 years at an interest rate of 0%, you will achieve a final capital of 0 $.
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| Year | Total Capital ($) | Interest ($) | Invested ($) |
|---|
This simulator is for information purposes only and does not constitute investment advice.
Compound interest increases the invested capital by continually adding the interest earned to the amount already invested. The more time passes, the more interest are generated, accelerating capital growth.
The compound interest formula is :
A = P × (1 + r / n) n × t
A : the total amount accumulated
P : initial capital invested
r : annual interest rate (in decimal form)
n : the number of times interest is compounded per year
t : duration of investment in years
At each period, the interests are calculated, based on the new total (capital + interests), creating rapid, exponential growth over the long term.
Investment : 1000$
Index : S&P 500 (American index)
Interests : 11%/year (average over the last 30 years)
Duration : 30 years
Simple interests : 1000 × (1 + 0,11 × 30) = 4 300$
Compound interest : 1000 × (1,11)30 ≈ 22 892$
« Compound interest is the eighth wonder of the world. Those who understand it get rich; those who don't, pay it. »