Compound Interest Calculator - The Warren Buffett Strategy | Ashiran
Compound Interest Calculator
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Compound Interest Table
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Compound Interest Calculator: The Power to Turn Thousands into Millions
Believe it or not, there are many technical traders in the world who generate higher annual returns than Warren Buffett. Some can even make 60-100% profit per year in the short term.
But here is the question! Why, after decades, does Warren Buffett remain one of the wealthiest investors in the world? Why haven't those "trading gods" surpassed him?
The answer lies in the most powerful equation in finance:
"Consistency of Returns + Long Term Horizon (Compound Interest)"
What is Compound Interest?
The simplest explanation is the "Snowball Effect":
- Start with a small snowball (Principal).
- Roll it down a hill (Invest). As it rolls, it gathers more snow (Interest/Profit).
- Instead of taking the extra snow off to eat (Withdrawing profits), you let it roll and stick to the original ball.
- In the following years, interest is calculated on the Principal + Previous Profits, causing the snowball to grow exponentially!
How to Use This Calculator for Financial Freedom
The tool above is designed to help you visualize your financial future clearly. It supports 2 modes:
- Fixed Principal: Best for those with a lump sum to invest and leave to grow over time.
- DCA (Add Capital): Best for salary earners or traders who want to add funds monthly/yearly (Dollar Cost Averaging) to accelerate portfolio growth.
Try playing with the numbers. You will be shocked at how "Small daily profits or monthly savings, when compounded over 10 years, can turn into a massive fortune."
If you want to dive deeper into the theory behind "Compound Interest"
and learn the detailed formula, read the full article here: