Formula
The yearly addition is divided into 12 monthly deposits, then compounded monthly:
Ending balance = deposits + monthly compound growth
The compound-interest page lets you choose the compounding schedule. This page is the yearly-addition view.
Assumptions
- The return stays at the rate you type.
- Each yearly addition is split into equal monthly deposits.
Worked example
$10,000 starting, $1,200 added each year, at 7% for 10 years ends at $37,405.14.
Input definitions
- Added each year
- New money you invest over the year. Zero is allowed.
Limitations
This is an estimate, not a loan offer, tax filing, or investment advice. The currency control changes the symbol only.
Questions
Is the return guaranteed?
No. The rate is a constant assumption, not a forecast.
Why monthly if I add money yearly?
Splitting the year keeps the growth comparable with a monthly savings plan.