Compound interest is the difference between the cash you contribute to an investment and the actual future value of the investment. In this case, by contributing just $1,500 per year with the annual contribution being increased by 10% per year (cumulative contributions of $302,207) you are able to accumulate $667,678 over 32 years. Compound interest makes up $365,471 of your future balance. <div id="chart1Container">Chart will load here</div> <script type="text/javascript">  </script> <ul><li><a href="inv01">How should I allocate my assets?</a></li><li><a href="inv02">Compare taxable vs. tax-free investment return</a></li><li><a href="inv03">What is the value of a bond?</a></li><li><a href="inv04">What is the return on my real estate investment?</a></li><li><a href="interest-calculator">What is the value of compound interest?</a></li><li><a href="inv06">What is the value of a call or put option?</a></li><li><a href="inv07">Taxable vs. tax-advantaged savings?</a></li><li><a href="inv08">What is my risk tolerance?</a></li><li><a href="inv09">What is the long-term impact of increased investment return?</a></li><li><a href="inv10">Certificate of deposit (CD) analyzer</a></li><li><a href="what-is-the-dividend-yield-on-a-stock">What is the dividend yield on a stock?</a></li><li><a href="inv12">How do expenses impact mutual fund returns?</a></li><li><a href="certificate-of-deposit-cd-laddering-strategy">Certificate of deposit (CD) laddering strategy</a></li><li><a href="share-certificate-analyzer">Share Certificate analyzer</a></li><li><a href="share-certificate-laddering">Share Certificate laddering strategy</a></li></ul><table class='pure-table pure-table-bordered' role='grid'><tr><th scope="col">Year</th><th scope="col">Beginning Balance</th><th scope="col">Savings @ 10.00%</th><th scope="col">Interest @ 7.00%</th><th scope="col">Ending Balance</th></tr><tr><td role="rowheader" scope="row">1</td><td>$500</td><td>$1,500</td><td>$140</td><td>$2,140</td></tr><tr><td role="rowheader" scope="row">2</td><td>2,140</td><td>1,650</td><td>265</td><td>4,055</td></tr><tr><td role="rowheader" scope="row">3</td><td>4,055</td><td>1,815</td><td>411</td><td>6,281</td></tr><tr><td role="rowheader" scope="row">4</td><td>6,281</td><td>1,997</td><td>579</td><td>8,857</td></tr><tr><td role="rowheader" scope="row">5</td><td>8,857</td><td>2,196</td><td>774</td><td>11,827</td></tr><tr><td role="rowheader" scope="row">6</td><td>11,827</td><td>2,416</td><td>997</td><td>15,240</td></tr><tr><td role="rowheader" scope="row">7</td><td>15,240</td><td>2,657</td><td>1,253</td><td>19,150</td></tr><tr><td role="rowheader" scope="row">8</td><td>19,150</td><td>2,923</td><td>1,545</td><td>23,618</td></tr><tr><td role="rowheader" scope="row">9</td><td>23,618</td><td>3,215</td><td>1,878</td><td>28,712</td></tr><tr><td role="rowheader" scope="row">10</td><td>28,712</td><td>3,537</td><td>2,257</td><td>34,506</td></tr><tr><td role="rowheader" scope="row">11</td><td>34,506</td><td>3,891</td><td>2,688</td><td>41,085</td></tr><tr><td role="rowheader" scope="row">12</td><td>41,085</td><td>4,280</td><td>3,175</td><td>48,540</td></tr><tr><td role="rowheader" scope="row">13</td><td>48,540</td><td>4,708</td><td>3,727</td><td>56,975</td></tr><tr><td role="rowheader" scope="row">14</td><td>56,975</td><td>5,178</td><td>4,351</td><td>66,504</td></tr><tr><td role="rowheader" scope="row">15</td><td>66,504</td><td>5,696</td><td>5,054</td><td>77,254</td></tr><tr><td role="rowheader" scope="row">16</td><td>77,254</td><td>6,266</td><td>5,846</td><td>89,366</td></tr><tr><td role="rowheader" scope="row">17</td><td>89,366</td><td>6,892</td><td>6,738</td><td>102,997</td></tr><tr><td role="rowheader" scope="row">18</td><td>102,997</td><td>7,582</td><td>7,741</td><td>118,319</td></tr><tr><td role="rowheader" scope="row">19</td><td>118,319</td><td>8,340</td><td>8,866</td><td>135,525</td></tr><tr><td role="rowheader" scope="row">20</td><td>135,525</td><td>9,174</td><td>10,129</td><td>154,828</td></tr><tr><td role="rowheader" scope="row">21</td><td>154,828</td><td>10,091</td><td>11,544</td><td>176,464</td></tr><tr><td role="rowheader" scope="row">22</td><td>176,464</td><td>11,100</td><td>13,129</td><td>200,693</td></tr><tr><td role="rowheader" scope="row">23</td><td>200,693</td><td>12,210</td><td>14,903</td><td>227,807</td></tr><tr><td role="rowheader" scope="row">24</td><td>227,807</td><td>13,431</td><td>16,887</td><td>258,125</td></tr><tr><td role="rowheader" scope="row">25</td><td>258,125</td><td>14,775</td><td>19,103</td><td>292,003</td></tr><tr><td role="rowheader" scope="row">26</td><td>292,003</td><td>16,252</td><td>21,578</td><td>329,833</td></tr><tr><td role="rowheader" scope="row">27</td><td>329,833</td><td>17,877</td><td>24,340</td><td>372,050</td></tr><tr><td role="rowheader" scope="row">28</td><td>372,050</td><td>19,665</td><td>27,420</td><td>419,135</td></tr><tr><td role="rowheader" scope="row">29</td><td>419,135</td><td>21,631</td><td>30,854</td><td>471,620</td></tr><tr><td role="rowheader" scope="row">30</td><td>471,620</td><td>23,795</td><td>34,679</td><td>530,094</td></tr><tr><td role="rowheader" scope="row">31</td><td>530,094</td><td>26,174</td><td>38,939</td><td>595,206</td></tr><tr><td role="rowheader" scope="row">32</td><td>595,206</td><td>28,792</td><td>43,680</td><td>667,678</td></tr></table><span style="padding-bottom:2px;background-color:#eee;line-height:1.45em;border-bottom:1px dotted;border-top:1px dotted;"><span style="color:#81A41E;font-size:100%;font-weight:700;"> FINANCIAL PLANNERS</span> <span style="color:#000;font-size:100%;font-weight:normal;">– <a href="http://www.plannerportal.com" target="_PP_WINDOW">Affordable Financial Planning Software</a> – <a href="http://www.plannerportal.com" target="_PP_WINDOW">www.PlannerPortal.com</a></span>  </span>