The Power of Compounding
Three investors. One retirement age. See how starting earlier can transform the same savings habit into a very different outcome.
Shared assumptions
Investment growth over time
At retirement
| Measure | Investor 1 | Investor 2 | Investor 3 |
|---|
How much would a later starter need to save?
Monthly or annual savings required for Investors 2 and 3 to match Investor 1's projected balance at the shared retirement age, assuming the same annual return.
Show year-by-year balances
| Age | Investor 1 | Investor 2 | Investor 3 |
|---|
Educational illustration only; not investment, tax, or legal advice. Assumes a constant effective annual rate of return and contributions at the end of each period. Monthly contributions use the monthly equivalent of the selected effective annual rate. Inflation-adjusted values are expressed in purchasing power at the earliest investor starting age. Excludes investment fees, taxes, and contribution limits. Actual returns fluctuate and results are not guaranteed.