What is Compound Interest?
Compound interest means earning interest on interest. Unlike simple interest, returns are reinvested, creating a snowball effect. Use PFlow's calculator to see your future wealth with regular monthly contributions.
Rule of 72
A quick way to estimate how long it takes to double your money: 72 ÷ annual return rate = years to double. At 10% annual return, your money doubles in about 7.2 years.
How to Use
- 1.Enter your initial investment (e.g., ₩1M).
- 2.Enter your monthly contribution (e.g., ₩100,000/month).
- 3.Enter the annual return rate and investment period.
- 4.View total future value, total principal, and interest earned.
Core Principles of Compound Investing
- •Time is your greatest asset: The longer you invest, the more powerful compounding becomes.
- •Consistency matters: Regular monthly contributions maximize the compound effect.
- •Rate matters: Even a 2% difference in return creates a massive gap over 20 years.
- •Patience: Compounding is slow at first, then explosive — trust the process.