The power of compounding
With compound interest you earn returns on your previous returns, so growth accelerates over time. Starting early matters more than contributing a lot: money invested in your 20s has decades longer to compound than money invested in your 40s.
The rule of 72
Divide 72 by the annual interest rate to estimate how many years it takes to double your money. At 7%, that is roughly 10 years.
Frequently asked questions
Is this financial advice?
No. Results are estimates for planning purposes. Your lender’s actual offer may differ because of fees, rounding and the exact rate.
Are contributions made at the start or end of the month?
At the end of each month, which is the most common assumption for regular savings plans.