Tools · Compound Interest
Watch your escape fund compound
Compounding is how a steady monthly habit turns into freedom money. Set a starting balance, a monthly contribution and a return — and see what time does to it.
After 20 years you'd have
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Assumes a constant return and steady contributions — real markets vary year to year. Education, not financial advice.
Frequently asked questions
How does compound interest work?
You earn returns on both your original money and the returns it's already made. Each period's gains become next period's base, so growth accelerates — the longer the horizon, the more dramatic the effect.
What is the compound interest formula?
For a lump sum: future value = principal × (1 + periodic rate)periods. With regular deposits you add the future value of an annuity. This calculator compounds monthly and adds your contribution automatically.
How much will my savings grow in 20 years?
Depends on your balance, contributions and rate. Roughly: $10,000 + $500/month at 7% grows to about $290,000 in 20 years — and most of that is interest, not contributions.
Does my contribution matter more than the rate?
Early on, contributions drive most growth; over long horizons the rate dominates. The biggest lever you fully control is how much you add and how early you start — see your savings rate.