Simple explanation
Compound interest happens when your investment earns returns, and those returns also start earning returns over time.
Why time matters
The longer money stays invested, the more compounding can work. This is why starting early can often matter more than starting with a large amount.
Example
If you invest money and it grows every year, future growth is calculated not only on your original amount, but also on the gains already accumulated.
Try it
Estimate compound growth.
Use the Noru compound calculator to see how time, contributions and returns can affect long-term growth.
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