Grow Your Money Calculator

How Your Money Grows: The Power of Compounding

The secret to building wealth isn't a secret at all—it's a force of nature called compounding.

Think of it like a snowball rolling downhill. It starts small, but as it rolls, it picks up more snow, getting bigger and faster. Compounding works the same way: your investment returns start earning their own returns. Over time, this creates a powerful growth curve that can turn modest, consistent savings into a significant nest egg.

This calculator shows you that snowball effect in action.

Understanding the Four Levers of Growth

You are in control of four key inputs. Understanding how they work together is the first step toward building a powerful financial future.

• Initial Deposit (Your Starting Point): This is the lump sum you begin with. A larger starting amount gives you a head start, but the most important step is simply getting started—no matter the amount.
• Monthly Contribution (Your Consistency Engine): This is the amount you commit to adding every month. This is your most important wealth-building habit. Small, regular contributions have an enormous impact over the long run, often outweighing the initial deposit.
• Time Frame (Your Most Powerful Ally): This is how many years you let your money work for you. As you can see from the chart, the biggest growth happens in the later years. The longer your time horizon, the more powerful the compounding effect becomes.
• Estimated Annual Return (Your Growth Engine): This is the average yearly percentage growth you anticipate. A high-yield savings account might earn a few percent, while a broad market index fund has historically averaged more. This number helps you understand how different investment strategies can impact your long-term results.