How Compounding Works
Compounding is the process where you earn interest on your interest. In the early years, it looks slow. But after year 7-10 (the "hockey stick" moment), your portfolio grows more from interest than your contributions.
Albert Einstein called compound interest the "eighth wonder of the world". See how small, consistent habits turn into massive wealth.
* Assumes monthly compounding at the end of each period. Taxes and inflation are not included in this simple projection.
Total Future Value
...
Total Interest Earned
+...
Total Invested
...
Compounding is the process where you earn interest on your interest. In the early years, it looks slow. But after year 7-10 (the "hockey stick" moment), your portfolio grows more from interest than your contributions.
Rule of 72
To double your money