The 8th Wonder of the World
Compound interest is essentially earning interest on your interest. Over long periods (10+ years), even small monthly contributions can grow into significant wealth.
Key Inputs
- Initial Amount: What you are starting with today.
- Return Rate: The annual percentage yield (APY). The S&P 500 historically averages roughly 10%, while savings accounts are lower.
- Contributions: Adding money regularly (Dollar Cost Averaging) accelerates growth exponentially.