The Power of Compound Interest (Time Value of Money)
Input your contributions, time horizon, and a few other assumptions, and watch to see how the combination of TIME and COMPOUNDING INTEREST can create a much happier future you!
One thing to note, the S&P 500 index has returned roughly 10% annually over the past 20 years.
Contact us with any questions about what this calculator is telling you.
The power of time and compounding
What could your money become?
See how a starting investment, ongoing contributions, time, and an assumed return could work together—and what the result may be worth in today’s dollars after inflation.
Your starting point
Assumes the contribution is invested at the end of each month.
Time and return assumptions
Used only to translate the projected future balance into today’s purchasing power. Set this to 0% to remove the adjustment.
Time can matter as much as return.
A longer time horizon gives earlier dollars more opportunities to compound. The return shown is an assumption—not a forecast—and actual markets do not grow in a straight line.
Projected value after 20 years
$0
Estimated value in today’s dollars
$0
Where the projected balance comes from
How the balance may build over time
What this assumes
Compounding. The starting investment compounds monthly using the selected annual return divided into monthly periods.
Contribution timing. Monthly contributions are added at the end of each month. Annual contributions are added at the end of each year.
Inflation. Today’s-dollar value is calculated by discounting the future balance by the selected inflation rate over the full time horizon.
Not included. The illustration does not account for taxes, investment fees, changes in contribution amounts, market volatility, or withdrawals.
Returns. The assumed annual return is hypothetical. Actual returns may be higher or lower and can be negative, particularly over shorter periods.
This calculator is provided for general educational purposes and produces hypothetical estimates from assumptions you control. It is not investment, tax, or legal advice, and it is not a prediction or guarantee of investment results. Investing involves risk of loss. Actual returns, inflation, taxes, fees, and contribution patterns will differ.