Learn what compound interest is, how it’s calculated—from annual rates to continuous compounding—and why it’s powerful for savings (and dangerous for debt).

Elvis Picardo is a regular contributor to Investopedia and has 25+ years of experience as a portfolio manager with diverse capital markets experience. Suzanne is a content marketer, writer, and ...

If you’re an investor looking to understand the benefits of compound interest, consider the example set by the legendary Warren Buffett. The 93-year-old’s net worth has grown to $137 billion over the ...

Understanding the concept of compound interest is crucial for anyone looking to grow their wealth. Unlike simple interest, ...

Whether you are paying interest or being paid interest, it's important to fully understand how that interest is calculated. There are two basic types of interest: simple and compound. How each type is ...

Simple interest is paid only on the principal of an investment or loan. Compound interest is calculated on both the initial principal and accumulated interest. Over time, compound interest generally ...

If you want to get the most return on money you save or invest, you want compound interest. The two types of interest are simple and compound. Simple interest is paid only on the money you save or ...

Your savings is a crucial part of your financial plan. A healthy savings account helps you cover unexpected expenses, pay for large purchases and achieve your financial goals without straining your ...

Simple interest calculates earnings or payments based solely on the initial principal, while compound interest grows by calculating interest on both the principal and the accumulated interest over ...

Knowing your loan's interest rate matters, as does learning how that rate is calculated. Interest is either simple or compound. Are Personal Loans a Good or Bad Idea? Taking out a personal loan can ...