Compound Interest Explained: The “Engine” of Long-Term Investing

Learn compound interest with clear examples. See how contributions and time create exponential growth and how small rate changes matter over decades.

Compounding means you earn returns on your initial money and on prior returns.

Compounding curve with contribution steps.

Why time matters most

Compounding feels slow early, then accelerates. Time is the key input.

Contributions amplify results

Monthly contributions often matter more than small rate changes.

Tools:

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