What is the difference between Compound Interest and Simple Interest?

Simple interest is calculated solely on the principal amount (I = P * r * t). Compound interest is calculated on the initial principal plus all accumulated interest from previous periods (A = P * (1 + r/n)^(nt)), creating exponential wealth growth over time.

How does the Dividend Reinvestment Plan (DRIP) accelerate portfolio growth?

With DRIP enabled, all dividend payouts are automatically used to purchase additional shares at the prevailing market price. In subsequent periods, those new shares also generate dividends, compounding both your share count and passive income stream.

What is CAGR and why is it better than average annual return?

Compound Annual Growth Rate (CAGR) measures the steady annual growth rate of an investment assuming profits are reinvested. It eliminates the distortion of extreme market ups and downs that make simple arithmetic averages misleading.

How does inflation affect my future savings and purchasing power?

Even moderate inflation (such as 3-4% per year) steadily erodes the real purchasing power of money. After 10 years at 4% inflation, $10,000 will only buy what $6,755 buys today. Your investment returns must exceed inflation to increase your real wealth.

What is the difference between APY and APR?

APR (Annual Percentage Rate) reflects the nominal cost of borrowing or simple interest rate, including upfront fees. APY (Annual Percentage Yield) takes compounding frequency into account, showing the true effective yield you earn on savings or investments.

Investment & Financial Calculators: Compound Interest, ROI, Stocks & Inflation

100% Client-Side In-Memory Financial Suite

14 Professional Financial, Investment & Valuation Calculators

Make data-driven wealth decisions with zero latency. Simulate dollar-cost averaging, compute dividend compound trajectories, assess stock trade profitability with broker fees, and evaluate future money values privately in your browser memory.

Interest Rates

Compound interest curves, simple interest loans, nominal to effective APY conversion, and true borrowing APR.

Investment Growth

Periodic DCA accumulation schedules, milestone horizon forecasting, net ROI, and annualized CAGR growth rate.

Stocks & Dividends

Stock trade net gain with commissions, dividend compounding (DRIP), yield on cost, and capital gains tax deductions.

Valuation & Inflation

Purchasing power erosion calculator, annuity future value (FV), and cash flow discounted present value (PV).

How Compound Interest Works (The Rule of Compounding)

Compound interest is often referred to as interest on interest. The mathematical formula is:A = P(1 + r/n)^(nt) + PMT * [((1 + r/n)^(nt) - 1) / (r/n)]. By regularly contributing even modest sums each month, reinvested earnings begin outperforming your own deposits over long investment horizons (10-30 years).

Break-Even Stock Trading Mathematics

Many investors fail to account for two-way trading commissions and government withholding taxes. Our Stock Profit tool computes the exact break-even sell price:Price = Total Buy Cost / [Shares * (1 - (Sell Fee% + Tax%))]. This guarantees you know the exact minimum price required to walk away with positive net returns.