Compound interest is the interest you earn on interest, and it can help grow an investment, even if no additional contributions are made. For example, if you invest $10,000 and it earns 5% interest each year, you’d have $10,500 at the end of the first year. At the end of the second year, you’d have $11,025. The more often interest is compounded, the more you earn.
To use the compound interest calculator, enter the initial investment you intend to make and the interest rate on the account.