Albert Einstein said: 'Compound interest is the 8th wonder of the world'

Albert Einstein said: "Compound interest is the 8th wonder of the world. Those who understand it earn it, those who don't pay it". You don't need a large initial capital to start. VNIT's tool helps you visualize how 1 million VND saved monthly can grow into substantial wealth over 10, 20 years through the power of compound interest.

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The Snowball Effect

VNIT's green chart shows an upward curve over time. This proves: Time is more important than capital.

Starting to save 1 million VND/month from age 20 will yield much greater results than saving 5 million VND/month starting at age 40.

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The Crossover Point - When Money Works For You

A unique feature on VNIT's compound interest tool is the ability to identify The Crossover Point.

  • This is the moment when annual interest generated exceeds your annual contributions.
  • Example: You contribute 12 million VND/year, but that year's interest is 14 million VND.
  • Meaning: From this moment, your asset base has the ability to sustain and grow itself without you needing to "pump" in too much additional money.
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How to Reach Your First 1 Billion VND?

The number 1 billion VND may sound distant, but if broken down, it's completely within reach. Switch to the "Goal Calculator" tab, and the tool will tell you:

"To have 1 billion VND after 10 years with a 10% interest rate, you only need to save about 158,000 VND/day (equivalent to 2-3 cups of bubble tea)."

Seeing the small daily number will help you maintain better financial discipline.

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Important Note: Interest Must Exceed Inflation

Interest must be higher than inflation to be meaningful. Check your personal inflation to ensure your investment truly grows.
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Frequently Asked Questions

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What is compound interest?

Compound interest (Lãi kép) is simply "interest on interest". The interest generated after each period is added to the principal to continue calculating interest for the next period, creating exponential growth.

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What is the Rule of 72 in compound interest?

The Rule of 72 is a quick formula to calculate the time needed for your capital to double. Formula: Years = 72 divided by Annual Interest Rate. Example: With a 10%/year interest rate, you need 72/10 = 7.2 years to double your assets.

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What's the difference between simple and compound interest?

Simple interest only calculates interest on the initial principal. Compound interest calculates interest on both the principal and previously accumulated interest. In the long term (over 10 years), compound interest yields significantly superior returns compared to simple interest.