See how a starting balance and monthly contributions can grow with monthly compounding.
Assumes monthly compounding and contributions made at the end of each month. Returns are estimates, not guarantees.
Compounding earns returns on the starting balance and on growth accumulated in earlier periods. Recurring contributions add new principal throughout the timeline.
Longer time periods can magnify the effect of compounding. Increasing recurring contributions often has an equally important effect because it increases the amount of money participating in future growth.
They are modeled at the end of each month. Beginning-of-month contributions would produce a slightly higher ending balance.
No. It shows a mathematical scenario using the annual rate you enter. Real investment returns vary over time.
The ending balance is simply the starting balance plus all monthly contributions.