Compound interest is the engine behind every retirement account. It's the reason saving early beats saving more later.
Interest on your interest
With compound growth, you earn returns not only on the money you put in, but also on the returns you've already earned. Each year's growth becomes next year's starting point, so your balance accelerates over time.
Why time matters most
$10,000 growing at 7% becomes about $20,000 in 10 years, $40,000 in 20 years, and roughly $76,000 in 30 years. The longer the money compounds, the more dramatic the curve — which is why starting in your 20s or 30s is such an advantage.
Contributions plus compounding
When you add money every month, each contribution starts its own compounding clock. Use the calculator to see how your monthly savings and growth stack up by retirement.
The cost of waiting
Waiting even five years to start can cut your final nest egg by tens of thousands, because those are the years with the most compounding left to run.