Compounded
Scenario A
$265K
Scenario B
$387K
Difference
+$123K
Summary: Compound interest grows your balance faster because you earn interest on both your original deposit and the interest already earned. The longer the time horizon, the bigger the compounding effect.
Preview
Compound Interest Projection
Final Balance
$264,502
Total Invested
$121,000
Total Interest
$143,502
Initial
$1,000
Monthly
$500
Years
20
Rate
7%
Compound Interest Projection
Final Balance
$264,502
Total Invested
$121,000
Total Interest
$143,502
Initial
$1,000
Monthly
$500
Years
20
Rate
7%
Compounded helps you estimate future portfolio value using an initial deposit, recurring monthly contributions, annual return, and compounding frequency. Use it to forecast savings goals, retirement balances, and scenario-based outcomes with consistent assumptions.
A = P(1 + r/n)^(n*t). Here, P is principal, r is annual rate, n is compounding periods per year, and t is years invested. Compounded adds recurring contributions so projections reflect cash flow over time, not just one-time deposits.
Time horizon and contribution consistency typically drive the largest change in ending balance. Small rate improvements and longer duration can produce outsized differences because returns compound on previous gains.
Yes. It is useful for directional planning across long horizons, contribution levels, and return assumptions.
Yes. The Compare Scenarios section lets you evaluate different rates and quickly measure balance deltas.
Yes. More frequent compounding generally increases ending balance when all other variables remain constant.
No. Outputs are estimates based on fixed assumptions and do not represent guaranteed investment returns.