The Retirement Corporation of America

The Miracle of Compound Interest

Albert Einstein called “compound interest” the eighth wonder of the world. He is also credited with discovering the Compound Interest Rule of 72.
While you might think “E=mc2” is his greatest discovery, apparently, he thought otherwise. Referring to compound interest, he said: “Compound interest is the greatest mathematical discovery of all time.

What’s so amazing about compound interest?
Thanks to the DOUBLING power of compound interest, an additional 5% to 10% hypothetical return per annum (as these charts show) can make a huge difference to your IRAs or old 401(k)s.

Use our Compound Interest Calculator to see how much different return rates can affect your nest egg.