Regular Contribution — the amount you add on each interval (e.g. $5 every day).
Contribution Interval — how often you contribute, which sets the matching compounding frequency:
Inflation Adjustment — defaults to Nominal (what you will have). Select an inflation rate to also see the real purchasing power of that figure in today's dollars. Both figures are shown — the nominal value does not disappear.
Default Rate: 10.7% = S&P 500 ten-year historical CAGR. Past performance does not guarantee future results.
Nominal figures (pre-inflation). Educational illustration only.
Compound interest means your returns earn returns. Every single day, the previous day's gains are added to the balance — and tomorrow's growth is calculated on that larger number. Over 30 years, this creates a dramatic difference between daily and annual compounding.
Why daily compounding matters. On a $5/day contribution at 10.7% annual return, annual compounding produces $342,948 over 30 years. Daily compounding produces $405,379 — a $62,431 difference. Same money. Same rate. Different compounding frequency.
The formula this calculator uses — contributions compound at the rate matching your chosen interval:
FV = PMT × ((1 + interval_rate)^(periods) − 1) / interval_rateinterval_rate derived from your annual rate r (decimal):
Daily →
r ÷ 365 · 365 periods/yearWeekly →
(1 + r/365)7 − 1 · 52 periods/yearMonthly →
(1 + r/365)365/12 − 1 · 12 periods/yearInitial investment always compounds daily, separately:
FV_initial = PV × (1 + r/365)^(years × 365)
The takeaway: start as early as possible, contribute consistently, reinvest everything, and let time do the heavy lifting. Increasing the time period — not the rate — is the most powerful lever.
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Every post is backed by the exact formula above — regional comparisons, DCA scenarios, lump-sum vs regular-contribution breakdowns, and long-horizon charts. No hype. Just numbers.
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