Calculate how your wealth grows through compound interest over the years.
| Year | Deposits | Interest (Year) | Interest (Total) | Capital |
|---|
Compound interest is a powerful effect in long-term wealth building. It calculates interest not only on the original capital but also on previously earned interest. Albert Einstein reportedly called compound interest the "eighth wonder of the world."
Final Capital = Initial Capital × (1 + Interest Rate/n)^(n×Years)
Where n is the number of compounding periods per year (e.g., 12 for monthly compounding).
For an investment of €10,000 at 5% interest:
A simple rule of thumb for calculating doubling time: Divide 72 by the interest rate. At 6% interest, your capital doubles approximately every 12 years (72 ÷ 6 = 12).