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$1,000 Compound Interest Over 20 Years
This page shows what a single deposit of $1,000 can grow to over 20 years. The starting return is 6 percent a year and you can change it.
By the end of 20 years the balance is $3,310. Interest has added $2,310 to the original $1,000.
How the growth is worked out
Compound interest means interest earns interest. Each month the balance gains 0.5 percent of itself. After 240 months of that, $1,000 has grown by a factor of 3.31.
Worked example
A deposit of $1,000 earning 6 percent a year reaches $3,310 after 20 years. Interest supplies $2,310 of that.
Halfway through, at 10 years, the balance is $1,819. The second half adds $1,491.
Questions about this calculator
What if the return on $1,000 over 20 years were one point lower than 6 percent?
At 5 percent the balance after 20 years is $2,713 instead of $3,310. One point higher gives $4,039.
What is $3,310 worth after prices rise 2.5 percent a year?
If prices rise at 2.5 percent a year for 20 years the final balance has the buying power of about $2,020 in starting-year money. Enter your own inflation rate in the calculator to test other cases.
What if you added $100 a month to $1,000 over 20 years?
The balance would reach $49,514 instead of $3,310. The deposits would add $24,000.
What yearly return would double $1,000 in 20 years?
About 3.5 percent a year. That is the rate at which $1,000 reaches $2,000 by year 20.
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This page is for education only and is not financial or tax advice.