Calculate power of compounding on your principal investment over time with flexible compounding frequency.
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Compound interest is the interest calculated on the initial principal as well as accumulated interest from previous periods. It enables exponential wealth growth compared to simple interest.
The compound interest formula is A = P × (1 + r/n)^(n×t), where P = Principal, r = Annual Rate, n = Compounding frequency per year, and t = Tenure in years.
Higher compounding frequencies (e.g. monthly or quarterly vs annually) generate higher returns because interest is added back to principal more frequently.
The Rule of 72 estimates how many years it takes to double your money. Divide 72 by your annual interest rate (e.g., 72 / 12% = 6 years).
Simple interest is calculated only on original principal, while compound interest accumulates on principal plus previous interest gains.
Equity mutual funds offer compounding-like growth as earned profits get reinvested into the fund to buy additional units.