Compound interest is the 8th wonder of the world. He who understands it, earns it; he who doesn’t, pays it.

-- Albert Einstein

Here’s a simple calculator to better understand compounding. The doc has:

A

where you can adjust inputs

A

that’s shows you growth over time

A

that contains one row for each time period. The chart is a just different way to view data in this table.

Tweaking four values in the

Value

column to change formula inputs.

Clicking on the two buttons.

Clear Schedule

to clear the table and

Generate Schedule

to generate the compounding chart.

The calculator demonstrates the growth of

100$

compounding at the rate of

8%, 1 time

per year, over a time period of

40 years.

Compounding Rate

0.08

0.08 for a compounding rate of 8%

r

Compounding times Per

Time Period

1

Usually 1. The number of times growth rate is applied per time period.

n

There are no rows in this table