Real talk: It's hard to visualize compounding. We're good at visualizing linear progress. But progress that compounds or is exponential can scramble our brains a bit at first.

I'm here to help! (jazz hands) The interactive calculator below can help you plan the future and see the power of compounding in action. Go on, then—take it for a spin. 🏎️

This calculator projects how your money can grow over time using a simple compound interest formula.

As with most investment planning, you'll need to know:

• Your starting balance (this is your current savings)
• Your monthly contribution
• Your expected annual return (As a %)
• Your time horizon, in years

The calculator then estimates how your balance grows year by year, separating your own contributions from the growth generated by compound returns.

Why compound interest is powerful

With simple interest, you only earn returns on your original deposit.

With compound interest, you earn returns on both your original contribution and the returns you've already earned.

This creates a snowball effect: growth builds on top of previous growth. Over long periods, this effect dominates your total balance.

For example, here's a graphic from my book Money Proud. It shows growth over time at a set contribution and set compound interest rate.

Notice how most of the gains over time come from the interest compounding itself.

I find that compounding lowers the pressure we sometimes put on ourselves. You don't have to earn all your wealth through labor alone.

Some of your wealth can come through compounding, and in many cases, the compounding delivers the majority of the growth in later years.

Spend a little extra time today thinking about your investing goals so you can plan for the future, but also find fun and fulfillment in the present. ⬥