Use this compound interest calculator to calculate total deposits, total interest, and ending balances.
What is compound interest?
The profit earned from investments, deposits, etc., added to the initial principal amount is called "compound interest." Let's take deposits as an example. A deposit earns interest, but the amount of interest included in the deposit is the principal amount, and the next time the interest is calculated, the interest grows.
There is a significant difference between simple interest and compound interest over the long term, and the higher the interest rate, the greater the difference in long-term investment with compound interest. Asset management can take advantage of the effects of compound interest to increase assets favorably. Therefore, it is very important to understand how it works.