The Ultimate Guide to Compound Interest & FIRE

Master your investments and visualize your path to financial freedom.

What is Compound Interest?

Compound interest is the interest on savings calculated on both the initial principal and the accumulated interest from previous periods. Albert Einstein famously called it the "eighth wonder of the world." It makes your money grow faster over time because you earn interest on your interest.

How to Use Our Calculator

  1. Currency: Select your preferred currency symbol.
  2. Initial Investment: Enter the amount you are starting with.
  3. Monthly Contribution: Enter the amount you plan to invest every month.
  4. Interest Rate: Enter the expected annual return (e.g., 8% for average stock market returns).
  5. Years: Enter how long you plan to keep your money invested.
  6. Click Calculate Growth to see the magic happen on the interactive chart!
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The FIRE Movement (Financial Independence, Retire Early)

The FIRE movement is a lifestyle objective with a goal of gaining financial independence and retiring early. The model dictates aggressive saving and investing. Using our Compound Interest Calculator, you can determine exactly how much you need to invest monthly to reach your FIRE number.

Frequently Asked Questions

Is it better to invest a lump sum or monthly?

Both have advantages. A lump sum gives your money more time to compound, but monthly contributions (Dollar Cost Averaging) reduce the risk of investing all your money before a market drop.