The Power of Compound Interest
Starting early is the secret to a comfortable retirement. This calculator uses the principle of Compound Interest to show how your money grows over time. Even small contributions made in your 20s or 30s can grow significantly larger than large contributions made in your 50s.
How We Calculate This
We take your Current Savings as a starting principal. We then add your Annual Contributions at the end of every year, applying the Expected Annual Return to the total balance.
- Conservative Strategy: Try entering 4-5% return.
- Aggressive Strategy: Try entering 8-10% return (average S&P 500 historical return).