Calcolatore di interesse composto

What is the difference between simple interest and compound interest?

Simple interest is calculated solely on the original principal amount throughout the entire term. Compound interest is calculated on the initial principal plus all of the accumulated interest from previous periods. Over long horizons, compound interest creates an exponential growth curve that yields significantly more wealth than simple linear interest.

How does compounding frequency affect my total investment returns?

The more frequently interest is compounded (e.g., daily or monthly instead of annually), the faster your wealth accumulates. This occurs because earned interest is added back to the principal balance sooner, allowing it to generate its own interest in subsequent periods. For example, a 10% nominal annual rate compounded daily translates to a higher Annual Percentage Yield (APY) than annual compounding.

What is compound interest and why is it called the "eighth wonder of the world"?

Compound interest earns returns on both your initial principal and all previously accumulated interest. Unlike simple interest (linear growth), compound interest creates exponential growth — the longer the time horizon, the steeper the curve. Einstein reportedly called it the "eighth wonder" because it demonstrates the enormous power of time and patience in wealth building.

How does compounding frequency affect my returns?

More frequent compounding (daily vs. annually) yields higher effective returns because interest is reinvested sooner. For example, $10,000 at 10% for 10 years grows to $25,937 with annual compounding but $27,183 with daily compounding. The Annual Percentage Yield (APY) standardizes these differences for easy comparison between products.

What is the Rule of 72?

The Rule of 72 is a quick mental shortcut: divide 72 by your annual return rate to estimate how many years it takes for your investment to double. At 8% returns, money doubles in approximately 9 years (72 ÷ 8). At 12%, it doubles in about 6 years. This rule is accurate for returns between 6% and 10%.

What is a realistic annual return rate for long-term investing?

The S&P 500 has averaged approximately 10% nominal returns (7% inflation-adjusted) over the past century. Bond portfolios typically return 4–6%. A diversified 60/40 stock-bond portfolio historically returns 7–8%. However, individual years can vary dramatically (−37% to +32% for stocks), so long-term consistency matters more than short-term predictions.