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๐Ÿ“ˆ Compound Interest Calculator

Compound interest is the mechanism by which earned interest is reinvested and in turn generates further interest. Enter your data to discover how much your capital will grow over time. Formula: A = P(1 + r/n)nt + PMT ร— [((1 + r/n)nt โˆ’ 1) / (r/n)]

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Compound Interest FAQ

Compound interest is the process by which earned interest is added to the capital and in turn generates new interest. Albert Einstein reportedly called it "the eighth wonder of the world".
With simple interest, interest is always calculated on the initial capital. With compound interest, interest is added to the capital and generates further interest in turn, accelerating growth over time.
You can use the "Rule of 72": divide 72 by the annual rate. At a rate of 7%, capital doubles in about 10 years (72รท7โ‰ˆ10.3).
No, results are before tax. In Italy, capital gains on investments are generally taxed at 26%. Consult a professional for your specific situation.