YieldRate
Visualize the power of compound interest and see how your investments grow over time
Investment Growth Over Time
No investments to display
Add an investment and click
"Show Yield Rate"
Investments
The Time Advantage
The earlier you start investing, the less money you need to contribute to reach the same goal. This is because time allows compound interest to work its magic. A 25-year-old investing $500/month at 7% annual return will have significantly more at retirement than a 35-year-old investing $1,000/month with the same return.
The best time to start investing was yesterday. The second best time is today.
Getting Started
Use the interactive chart above to explore different investment scenarios. Adjust the parameters to see how:
- Your initial investment amount affects long-term growth
- Regular monthly contributions accelerate wealth building
- Different interest rates impact your final returns
- Time periods influence the power of compounding
Compare multiple investment strategies side-by-side to find the approach that works best for your financial goals and timeline.
Why Investing Matters
Compound Growth
Your money grows exponentially over time as interest earns interest, creating a snowball effect that accelerates your wealth.
Financial Freedom
Consistent investing builds wealth that can support your lifestyle, fund your dreams, and provide security for your future.
Time is Your Ally
Starting early gives your investments more time to compound, making it easier to reach your financial goals with less effort.
Reach Your Goals
Whether it's retirement, a home, or education, strategic investing helps you achieve your financial milestones faster.
How Investment Growth Works
Investment growth is powered by compound interest - one of the most powerful concepts in finance. When you invest money, you earn returns on your initial investment. But here's where it gets interesting: those returns also generate their own returns.
For example, if you invest $10,000 at a 7% annual return, you'll earn $700 in the first year. But in the second year, you earn 7% on $10,700, not just your original $10,000. This compounding effect accelerates over time, creating exponential growth rather than linear growth.
Regular contributions amplify this effect even more. By consistently adding to your investment each month, you're continuously feeding the compounding machine, dramatically increasing your wealth over the long term.