This Magic of Compounding calculator allows you to consider an initial investment, recurring contributions, inflation, rates of return and different periods of growth. Compounding is a process that can multiply the potential growth from an investment. The compounding process ensures that you earn interest on your original invested amount and also earn interest on the returns.
Compounding is what happens when you take a number and increase it over and over again by a percentage. More years for investment growth can lead to more compounding. The Magic of Compounding calculator is part of our series of investment planning calculators, designed to help clients meet their long and short term goals.
Additional calculators to help with your planning include: