How to Use Compound Calculator 💡
RichFlow Calculator offers two powerful modes for your financial planning:
- 1. Asset Growth Mode: Predict how much your current savings and monthly contributions will grow over time.
- 2. Savings Goal Mode: Reverse calculate how much you need to save monthly to reach a specific target (e.g., $1M in 10 years).
Simply enter your Initial Investment, Interest Rate, and Duration. The calculator instantly visualizes your path to wealth without requiring complex math.
What is Compound Interest?
Albert Einstein famously called compound interest the "eighth wonder of the world." He said, "He who understands it, earns it; he who doesn't, pays it." It is the fundamental principle behind wealth accumulation.
Compound interest is not just interest on your principal—it is "interest on interest." Over time, this creates a Snowball Effect, where your wealth grows exponentially. The changes might seem small at first, but once you cross a certain threshold, the growth becomes explosive. This is why time is the most valuable asset for investors.
For example, if you invest $10,000 at a 10% annual return for 30 years, the interest alone will generate over $160,000, far exceeding your original principal. Starting early is the key to leveraging this power.
Math Behind the Magic 🧮
We use precise financial formulas to ensure accuracy for any frequency you choose.
* The variable "n" automatically adjusts based on whether you choose Daily, Monthly, or Annual compounding.