Albert Einstein is often (perhaps apocryphally) credited with calling compound interest the eighth wonder of the world.
Simple Interest vs Compound Interest
Simple interest is calculated only on the original principal, every period.
Compound interest is calculated on the principal plus all interest earned so far.
The Compound Interest Formula
``` A = P (1 + r/n)^(nt) ```
Try It Yourself
Use our SIP or FD calculator to see exactly how compounding plays out over your own investment horizon.