How compounding works
Interest is calculated monthly and added back to the balance, so future interest is earned on top of past interest — not just the original amount. This calculator compounds monthly and assumes each monthly contribution is added at the start of that month.
Why starting early matters
Because interest compounds on interest, the last few years of a long timeline usually add more value than the first few — which is why starting early, even with a small amount, tends to beat starting later with more.
A note on returns
Investment returns fluctuate year to year in reality; this tool assumes a constant rate for simplicity. Treat the result as a rough long-term estimate, not a guarantee.
Fund the plan from your real budget
Consistent contributions matter more than the exact rate. Outlay helps you find real monthly surplus in your spending so contributions like this stay consistent.