See the hockey-stick power of compound interest. Inflation-adjusted, with the real cost of waiting.
Compound interest means you earn interest on both your original deposit and all the interest you've already earned. Over time this creates exponential growth — the "hockey stick" curve you see in this calculator. The earlier you start, the more powerful it becomes.
A million dollars in 30 years won't buy what a million dollars buys today. With 3% annual inflation, $1,000,000 in 30 years has the purchasing power of about $412,000 today. Toggling inflation adjustment shows your future balance in today's dollars so you can plan realistically.
Use a High-Yield Savings Account for money you'll need in 1–5 years — it's safe, liquid, and currently paying 4–5% APY. Use a brokerage account (index funds or robo-advisor) for money you won't touch for 5+ years — historically returns 7–10% annually but comes with market ups and downs.
A common starting point is 15% of your gross income. But any amount beats zero — even $50/month at 8% grows to over $75,000 in 30 years. Use this calculator to find the monthly contribution that hits your target balance within your timeline.
For long-term planning, 7% is a widely used conservative estimate (roughly the S&P 500's historical return after inflation). For short-term goals in a savings account, 4–5% reflects current HYSA rates. Adjust based on where your money will actually be invested.
More frequent compounding means slightly higher returns. Daily compounding beats annual compounding — but the difference is small at moderate rates. At 7% annual rate, daily compounding returns about 7.25% versus exactly 7% with annual compounding. The bigger factor is always your contribution amount and time horizon.