The Power of Compounding Compounding is when your earnings generate their own earnings. In this calculator, we assume interest is compounded annually. The longer you leave the asset, the faster the curve grows.

Future Value (FV) Formula We use the standard formula: FV = PV × (1 + r)ⁿ. If you add annual contributions, those are treated as a separate series of investments growing alongside your initial principal.

Inflation Adjustment If enabled, we subtract 3% from your growth rate. This shows you the "Real" value in today's dollars. For example, having $1 million in 30 years sounds great, but it might only buy what $400k buys today.