What is compound interest vs simple interest?

Simple interest pays only on the original principal. Compound interest pays on the principal plus all accumulated interest — this is why it grows exponentially.

How often should I look for compounding frequency?

Daily compounding earns the most, but the difference vs monthly is small. What matters far more is the interest rate and how long you invest.

What is a realistic return to expect?

Historically, a broad US stock market index (like the S&P 500) has returned about 10% annually before inflation, or roughly 7% after. Past performance doesn't guarantee future results.

How does adding monthly contributions affect growth?

Regular contributions (dollar-cost averaging) dramatically accelerate growth. Use our Retirement Savings calculator to model regular contributions over time.

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Compound Interest Calculator

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