The basic idea
Compound interest means earning returns not only on your original investment, but also on the returns already accumulated over time.
Instead of growing linearly, investments using compounding can grow exponentially over long periods.
Why compounding matters
Time is one of the most important factors in investing. The earlier you start, the more time compounding has to work.
Even relatively small monthly contributions can become significant over decades when investment returns continue to compound.
Example of compound growth
If you invest consistently and earn annual returns, your future growth may accelerate because returns begin generating additional returns.
This is why long-term investing strategies often focus on patience and consistency rather than short-term timing.
Use the calculator
You can explore different contribution amounts, time horizons and interest rates using the Noru compound interest calculator.
Open Compound Calculator