Why "Interest Grows"?
We want to highlight the power of compound interest. As time goes by, it grows exponentially. This works for you -- if you have savings -- and against you -- if you have debt. Interest Grows highlights how interest works so you can use it to your advantage.
We're also concerned about the amount of debt people, especially the young, are in. Anything that can be done to help people manage their debt and get out of it is something we want to do. The debt snowball provides a way to manage and eliminate debt so you can do something with your money besides pay it in interest.
Banks understand how interest grows. They will loan you money at 6-7% while your savings account earns 0.5%. Banks have really big, fancy buildings that cost a lot of money. Maybe they're on to something.
Do you know there are other financial calculators out there?
Yes, but not many that provide a graph :-). Compound interest is a powerful factor in determining personal finance, and we want to highlight how it works, not just provide a mortgage calculator or a simple investment calculator. If this site helps a few more people understand interest and control their debt, then it's worth it.
Many people talk about the debt snowball, but there aren't many online resources to help calculate how it works. Also many people do not see how much time factors into savings.
You calculations differ from mine. Why?
Our calculators are meant to provide accurate illustrations of various financial situations. Differences in rounding and compounding could give you slightly different results than those shown here. If you have results that are significantly different than those we have here, please let us know.
Also interest rates on investments aren't consistent and this affects return. For example, while a mutual fund may average 12% over 20 years, some years it may make 4% and other years 20%, which affects overall return.
I think your site it fantastic! What should I do?
Please let us know if you find this site helpful. We would also invite you to share these calculators with anyone think might find them useful and invite anyone to link to our site.