How this number is made
This is compound growth of a single deposit. If you add money every month, use the compound-interest page. The rate is an assumption.
- The rate compounds once a year here.
- Taxes and fees are not taken out. Lower the rate if you want them to be.
Formula
Future value = principal × (1 + rate) ^ years.
Worked example
With the figures already in the form, value after those years is $27,590.
Questions
Why does this differ from the compound-interest page?
That page can add a monthly contribution and compounds monthly. This page is one deposit, once a year.
Can the rate be negative?
Yes. A loss compounds too.