Lesson 2 of 8 · Draft

This lesson is being written. Here's the early draft — a fuller explanation and interactive widgets are coming.

The Power of Compounding

Compounding means earning returns on your prior returns — over long horizons it is the single largest driver of a portfolio's growth.

Starting principal$10,000Monthly contribution$500Annual return7%Years30 yr

Contributed$190,000

Interest$501,150

Final value$691,150