Compound interest is interest earned on both the initial principal and the accumulated interest from previous periods. It's the fundamental force that grows investments exponentially over time.
Future Value = Principal × (1 + r)^n where r = annual rate, n = number of years
$10,000 at 8% annual return: After 10 years = $21,589, after 20 years = $46,610, after 30 years = $100,627. The growth accelerates as the base gets larger.
Try our compound interest calculator to visualise how your investments grow over time. AllInvestView's net worth projection tool uses this to project future portfolio value.