The 8th Wonder of the World

"Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it." — often attributed to Einstein

Simple vs Compound Interest

  • Simple interest: Interest earned only on principal. ₹10,000 at 8% for 10 years = ₹8,000 interest.
  • Compound interest: Interest on principal + previous interest. ₹10,000 at 8% for 10 years = ₹11,589 interest.

Same rate, same period — compound earns 44% more.

Why Starting 5 Years Earlier Doubles Wealth

Investing ₹5,000/month at 12% return:

  • Start at 25, retire at 60 (35 years) → ₹3.24 Crore
  • Start at 30, retire at 60 (30 years) → ₹1.76 Crore

5 fewer years = ₹1.48 Crore less. Time is the multiplier.

The Rule of 72

Divide 72 by your annual return rate to find how many years to double your money.

  • At 6% → money doubles in 12 years
  • At 8% → doubles in 9 years
  • At 12% → doubles in 6 years

Calculate Now

Use our Compound Interest Calculator to see exactly how your money grows with daily, monthly, quarterly, or annual compounding.