See how your investments grow over time with the power of compounding.
Investment Details
Results
Year-by-Year Growth
| Year | Balance | Contributions | Interest Earned | Total Interest |
|---|
Compound interest formula: A = P(1 + r/n)^(nt), where P = principal, r = annual rate, n = compounding periods per year, t = time in years.
With monthly contributions, each payment is compounded from the month it's made. This dramatically accelerates growth — contributions made early benefit from more compounding periods.
The Rule of 72: Divide 72 by your interest rate to estimate how many years it takes to double your money. At 7% annual return, your money doubles roughly every 10.3 years.
More frequent compounding (daily vs. annually) has a small but real effect. At 7%, daily compounding yields about 7.25% effective annual rate, vs. exactly 7% for annual compounding.