Compound interest calculator
Compound interest is why time matters more than timing when investing. Play with the numbers and watch how sharply the result changes in the final years.
This assumes a constant rate of return. In reality it fluctuates a lot. The result shows a rough order of magnitude, not a forecast.
Die Erklärung dazu steht in der Lektion Goal and time horizon.
Frequently asked questions
Why does the probability of a loss fall with a longer holding period?
Because expected return grows linearly with time, while volatility only grows with the square root of time.
Does that mean stocks become safe after ten years?
No. There have historically been decades with a negative real result. A long horizon only lowers the pressure to sell at a low.
Related
- Pay down debt or investCalculators
- Compound interestStage 0
- Why saving in a bank account means losing moneyStage 0