Visualize how your money grows over time through the power of compounding. Compare varying annual rates of return, compounding frequencies, and regular contribution amounts.
Mathematical Formula
A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)], where PMT is monthly deposit.
Frequently Asked Questions
What is the Rule of 72?
The Rule of 72 is a quick shortcut to estimate how many years it will take for your money to double at a given annual interest rate. Divide 72 by the annual return rate (e.g., at 8% return, 72 / 8 = 9 years to double).
What impact does starting 5 years earlier have?
Due to compounding, starting 5 years earlier can double your eventual retirement nest egg even if your total out-of-pocket contributions are only slightly higher.