$1,000 Compound Interest Over 40 Years

Questions about this calculator

Is a lump sum of $1,000 better than depositing it monthly over 40 years?

For growth, yes. $1,000 invested at the start reaches $10,957. The same money split into 480 equal monthly deposits reaches only $4,149 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.

Is 40 years long enough for $1,000 to double at 6 percent?

$1,000 reaches $2,000 after about 11.6 years. So 40 years is more than enough. A quick check is to divide 72 by the rate, which gives 12 years.

What if the return on $1,000 over 40 years were one point lower than 6 percent?

At 5 percent the balance after 40 years is $7,358 instead of $10,957. One point higher gives $16,311.

What is $10,957 worth after prices rise 2.5 percent a year?

If prices rise at 2.5 percent a year for 40 years the final balance has the buying power of about $4,081 in starting-year money. Enter your own inflation rate in the calculator to test other cases.