Changes the symbol only. Amounts are not converted.
Added at the end of each month to both paths.
The monthly amount goes up by this much at the start of each new year. 0 keeps it the same.
On: the monthly amount changes each year by the inflation rate below, so it follows the inflation you entered.
Whole years, 1 to 50.
The yearly rate your savings account pays, with compounding included (called APY in the US and AER in the UK).
A rate you choose to test. It is applied unchanged every year.
Used only to show each balance in today's money: what it would buy at today's prices.
Subtracted from the investment return: 6% with a 1% fee grows at 5%.
Taken from interest as it is credited.
Taken once, on gains, as if sold at the end of the years entered.
After 10 years (example inputs)
In today's money, each deposit is counted at the prices of the month it was made, so the amount put in differs from the amount in future money.
Of the $99,145 in the investing scenario, $70,000 is money put in and $29,145 is growth. Of the $83,163 in the saving scenario, $70,000 is money put in and $13,163 is interest.
With no fee or tax, both paths end the same when the investment return equals the savings rate, 3%.
If the investment return were −2% every year instead of 6%, the investing scenario would end at $62,544, and the saving scenario would end $20,619 higher.
Under these assumptions. Savings rate, investment return and inflation are each held constant. Investment returns you enter are assumptions, not forecasts; actual returns vary from year to year and can be negative, and actual savings rates change over time. Not included: account types and their tax rules, withdrawals. This compares two modeled balances only; it does not indicate which option to choose.
Showing the result for your last valid inputs.
Each path's modeled balance at each year end, in future money. The dashed line is money put in.
After 10 years the gap is $15,982. Over half of the 10-year difference appears in the last three years: the difference was $7,868 at year 7 and $15,982 at year 10.
Money put in is the starting amount plus every monthly contribution. Growth and interest are what that money earned.
The difference between the two modeled balances for other investment returns and other numbers of years, with the savings rate held at 3%. Your inputs are outlined.
| Investment return | 5 years | 10 years | 20 years | 30 years |
|---|---|---|---|---|
| 8% | Investing +$7.3K | Investing +$28.5K | Investing +$149.6K | Investing +$491.3K |
| 6% (yours) | Investing +$4.2K | Investing +$16K | Investing +$77.3K | Investing +$231.1K |
| 4.5% | Investing +$2.1K | Investing +$7.6K | Investing +$34.7K | Investing +$97.4K |
| 3% (the savings rate) | Same | Same | Same | Same |
| 1% | Saving +$2.6K | Saving +$9.1K | Saving +$36.6K | Saving +$90.5K |
Today's money shows each amount at today's prices. Each deposit is converted at the prices of the month it was made, so the money put in changes too. When the savings rate equals inflation and there is no tax on savings interest, the saving column matches the put-in column.
| After | Saving | Investing | Difference | Put in, in today's money | Saving in today's money | Investing in today's money |
|---|---|---|---|---|---|---|
| 1 year | $16,382 | $16,763 | Investing +$381 | $15,905 | $15,905 | $16,275 |
| 2 years | $22,956 | $23,932 | Investing +$976 | $21,638 | $21,638 | $22,559 |
| 3 years | $29,726 | $31,532 | Investing +$1,806 | $27,204 | $27,204 | $28,856 |
| 4 years | $36,700 | $39,587 | Investing +$2,887 | $32,608 | $32,608 | $35,172 |
| 5 years | $43,883 | $48,125 | Investing +$4,242 | $37,854 | $37,854 | $41,513 |
| 6 years | $51,282 | $57,176 | Investing +$5,894 | $42,948 | $42,948 | $47,884 |
| 7 years | $58,902 | $66,770 | Investing +$7,868 | $47,893 | $47,893 | $54,290 |
| 8 years | $66,751 | $76,939 | Investing +$10,188 | $52,694 | $52,694 | $60,737 |
| 9 years | $74,836 | $87,719 | Investing +$12,883 | $57,356 | $57,356 | $67,229 |
| 10 years | $83,163 | $99,145 | Investing +$15,982 | $61,881 | $61,881 | $73,773 |
The chart, the year-by-year table, the difference at other investment returns and the method are in the full calculator.