What will $100/month become in 5 years?
Investing $100/month for 5 years at a 7% average annual return grows to about $7,159. You'd contribute $6,000 of that yourself. The other $1,159 is compounding.
Consistent monthly investing is the engine of wealth for most people. At $1,200/year for 5 years and a 7% average annual return, you end with about $7,159. Your own contributions are $6,000; compounding does the rest.
The longer the horizon, the more compounding dominates. That's why starting earlier matters more than starting bigger. These are nominal figures, before inflation.
Assumptions
- Annual return
- 7%
- Time horizon
- 5 yr
Frequently asked
What does $100/month become in 5 years?
About $7,159 at a 7% average annual return.
How much of that did I contribute vs. earn?
You contribute $6,000; the remaining $1,159 is investment growth.
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