How it works
Compound growth of a starting balance, plus regular contributions, is:
FV = P(1 + r/n)nt + PMT × [ ((1 + r/n)nt − 1) / (r/n) ]
- P = starting principal · PMT = contribution per period
- r = annual rate · n = compounds per year · t = years
Worked example
$10,000 start + $200/mo for 20 years at 7%, compounded monthly:
- Future value ≈ $143,000
- Of which contributions ≈ $58,000 and interest ≈ $85,000