Frequently asked questions
What is compound interest?
Compound interest is return earned not only on your initial amount but also on the returns already accumulated. Over time growth accelerates, because the gains earn too.
What annual return should I assume?
The return is an assumption you set. As a rough reference, broad indexes have historically returned around 6–8% a year on average, but past performance doesn't guarantee the future — try a few values.
Is this a forecast or investment advice?
No. The result is an educational illustration based on assumptions you set — not a forecast, and not investment advice or a recommendation. You make the decision.