Balance over time
Where the final balance comes from
Summary
Understanding compound growth
What's the "Rule of 72"? ▾
A quick mental shortcut: divide 72 by your annual rate to estimate how many years it takes your money to double. At 7%, that's about 10.3 years — no calculator needed for a ballpark.
Does compounding frequency matter much? ▾
Yes, but less than most people expect — going from annual to daily compounding at the same stated rate typically adds a fraction of a percent in effective yield per year. Contribution amount and time in the market matter far more than compounding frequency.
Why does contribution timing change the result? ▾
Money contributed at the start of a period earns interest for that whole period; money contributed at the end doesn't. Over many periods this compounds into a real difference, especially at higher rates or longer time horizons.
What's the difference between nominal and real (inflation-adjusted) value? ▾
Nominal value is the actual dollar amount you'll have. Real value divides that by expected inflation to show what it can actually buy in today's purchasing power — a more honest picture of long-term growth.
| Year | Contributions this year | Interest this year | Total contributed | Total interest | Balance |
|---|
| Name | Principal | Contribution | Rate | Years | Future value |
|---|