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Home / Compound interest / $300 a month, 20 years

$300 a Month for 20 Years

Saving $300 every month for 20 years is a steady habit. See what 6 percent a year does to it. The page starts with an empty account.

After 20 years the balance reaches $138,612. Interest supplies $66,612 of it.

$
$
%
years
%
Final balance
$138,612
Total you put in
$72,000
Interest earned
$66,612
Year by year
YearTotal put inBalance
1$3,600$3,701
2$7,200$7,630
3$10,800$11,801
4$14,400$16,229
5$18,000$20,931
6$21,600$25,923
7$25,200$31,222
8$28,800$36,849
9$32,400$42,822
10$36,000$49,164
11$39,600$55,897
12$43,200$63,045
13$46,800$70,634
14$50,400$78,691
15$54,000$87,246
16$57,600$96,327
17$61,200$105,969
18$64,800$116,206
19$68,400$127,074
20$72,000$138,612
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How the growth is worked out

The calculation runs month by month. The yearly return of 6 percent becomes a monthly rate of 0.5 percent. Each month the balance grows by that rate and then the deposit of $300 is added. Every deposit keeps growing for the rest of the 20 years.

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Worked example

A monthly deposit of $300 for 20 years comes to $72,000 of your own money. The ending balance is $138,612.

Interest accounts for $66,612. That is 48 percent of the final balance.

Questions about this calculator

What if the return on $300 a month over 20 years were 5 percent instead of 6?

The balance would be $123,310 instead of $138,612. A return one point higher gives $156,278.

What if you stopped the $300 deposits halfway through 20 years at 6 percent?

After 10 years the balance is $49,164. Left alone for the second half, it would grow to $89,448 instead of $138,612.

What would it take to match $138,612 over 20 years if you started 5 years later at 6 percent?

You would need $476.63 a month for 15 years instead of $300 for 20. Starting early does much of the work.

How much would $600 a month reach over 20 years at 6 percent?

$277,225 at 6 percent. That is 2 times the balance from $300 a month.

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This page is for education only and is not financial or tax advice.