See the magic of compounding with our Compound Interest Calculator.
Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, "interest on interest". It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.
"Compound interest is the eighth wonder of the world. He who understands it, earns it... he who doesn't... pays it."