The power of compound interest

This comparison will show you why it pays to save as much as you can, and earn the most interest possible on what you save.

The power of compound interest

Year $5 a day at no interest $5 a day at 5% interest, compounded daily
Year 1 $1,825 $1,871
$46 more
Year 5 $9,125 $10,366
$1,241 more
Year 10 $18,250 $23,677
$5,427 more
Year 30 $54,750 $127,077
$72,327 more!

 
There’s not much difference at the end of one year — but at the end of 30 years, the person who saved using compound interest has more than $72,000 extra!

Savings calculator

Instructions: Now, try it yourself! Use this calculator to estimate how your savings can grow over time.

Value of Investment





*Daily compounding, with contributions made at the end of the time period.

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