Question 1

What yearly return would double $1,000 in 25 years?

Accepted Answer

About 2.8 percent a year. That is the rate at which $1,000 reaches $2,000 by year 25.

Question 2

Is a lump sum of $1,000 better than depositing it monthly over 25 years?

Accepted Answer

For growth, yes. $1,000 invested at the start reaches $4,465. The same money split into 300 equal monthly deposits reaches only $2,310 at 6 percent because most of it spends less time growing. Monthly deposits suit a budget while a lump sum suits cash you already have.

Question 3

Is 25 years long enough for $1,000 to double at 6 percent?

Accepted Answer

$1,000 reaches $2,000 after about 11.6 years. So 25 years is more than enough. A quick check is to divide 72 by the rate, which gives 12 years.

Question 4

What if the return on $1,000 over 25 years were one point lower than 6 percent?

Accepted Answer

At 5 percent the balance after 25 years is $3,481 instead of $4,465. One point higher gives $5,725.

Year	Total put in	Balance
1	$1,000	$1,062
2	$1,000	$1,127
3	$1,000	$1,197
4	$1,000	$1,270
5	$1,000	$1,349
6	$1,000	$1,432
7	$1,000	$1,520
8	$1,000	$1,614
9	$1,000	$1,714
10	$1,000	$1,819
11	$1,000	$1,932
12	$1,000	$2,051
13	$1,000	$2,177
14	$1,000	$2,312
15	$1,000	$2,454
16	$1,000	$2,605
17	$1,000	$2,766
18	$1,000	$2,937
19	$1,000	$3,118
20	$1,000	$3,310
21	$1,000	$3,514
22	$1,000	$3,731
23	$1,000	$3,961
24	$1,000	$4,206
25	$1,000	$4,465

$1,000 Compound Interest Over 25 Years

How the growth is worked out

Worked example

Questions about this calculator

What yearly return would double $1,000 in 25 years?

Is a lump sum of $1,000 better than depositing it monthly over 25 years?

Is 25 years long enough for $1,000 to double at 6 percent?

What if the return on $1,000 over 25 years were one point lower than 6 percent?

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