Project how your money grows over time with annual compounding.
| Year | Start balance | Interest earned | Contributions | End balance |
|---|---|---|---|---|
| 1 | 100,000 | +10,000 | +12,000 | 122,000 |
| 2 | 122,000 | +12,200 | +12,000 | 146,200 |
| 3 | 146,200 | +14,620 | +12,000 | 172,820 |
| 4 | 172,820 | +17,282 | +12,000 | 202,102 |
| 5 | 202,102 | +20,210 | +12,000 | 234,312 |
| 6 | 234,312 | +23,431 | +12,000 | 269,743 |
| 7 | 269,743 | +26,974 | +12,000 | 308,718 |
| 8 | 308,718 | +30,872 | +12,000 | 351,590 |
| 9 | 351,590 | +35,159 | +12,000 | 398,748 |
| 10 | 398,748 | +39,875 | +12,000 | 450,623 |
Monthly contributions accumulate during the year but are only added to your balance at the end of that year. They begin earning interest the following year — not in the year they were deposited. For example, 1,000/month adds 12,000 to your equity at year-end, but that 12,000 only starts compounding the next year. This avoids the unrealistic shortcut of money earning a full year of interest the moment it is deposited.