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 $1,200 per year with the annual contribution being increased by 0% per year (cumulative contributions of $61,200) you are able to accumulate $557,332 over 50 years. Compound interest makes up $496,132 of your future balance. <div id="chart1Container">Chart will load here</div> <script type="text/javascript"> <!-- var myChart1 = new FusionCharts( "Pie2D", "myChart1Id", "100%", "100%", "0", "1" ); myChart1.setXMLData("<chart showValues='1' showFCMenuItem='0' decimals='0' formatNumberScale='0' startingAngle='45' enableRotation='1' caption='Value Of Compound Interest' xAxisName='' numberPrefix='$' bgColor='FFFFFF' showBorder='1' borderColor='FFFFFF' borderThickness='1' canvasBgColor='E6E3CF' palette='2' numberSuffix='' thousandSeparator=',' decimalSeparator='.'><set value='1200.0' label='Beginning Balance' /><set value='60000.0' label='Annual Contributions' /><set value='496132.0' label='Compound Interest' /></chart>"); // --> </script> <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 @ 0.00%</th><th scope="col">Interest @ 7.00%</th><th scope="col">Ending Balance</th></tr><tr><td role="rowheader" scope="row">1</td><td>$1,200</td><td>$1,200</td><td>$168</td><td>$2,568</td></tr><tr><td role="rowheader" scope="row">2</td><td>2,568</td><td>1,200</td><td>264</td><td>4,032</td></tr><tr><td role="rowheader" scope="row">3</td><td>4,032</td><td>1,200</td><td>366</td><td>5,598</td></tr><tr><td role="rowheader" scope="row">4</td><td>5,598</td><td>1,200</td><td>476</td><td>7,274</td></tr><tr><td role="rowheader" scope="row">5</td><td>7,274</td><td>1,200</td><td>593</td><td>9,067</td></tr><tr><td role="rowheader" scope="row">6</td><td>9,067</td><td>1,200</td><td>719</td><td>10,986</td></tr><tr><td role="rowheader" scope="row">7</td><td>10,986</td><td>1,200</td><td>853</td><td>13,039</td></tr><tr><td role="rowheader" scope="row">8</td><td>13,039</td><td>1,200</td><td>997</td><td>15,235</td></tr><tr><td role="rowheader" scope="row">9</td><td>15,235</td><td>1,200</td><td>1,150</td><td>17,586</td></tr><tr><td role="rowheader" scope="row">10</td><td>17,586</td><td>1,200</td><td>1,315</td><td>20,101</td></tr><tr><td role="rowheader" scope="row">11</td><td>20,101</td><td>1,200</td><td>1,491</td><td>22,792</td></tr><tr><td role="rowheader" scope="row">12</td><td>22,792</td><td>1,200</td><td>1,679</td><td>25,671</td></tr><tr><td role="rowheader" scope="row">13</td><td>25,671</td><td>1,200</td><td>1,881</td><td>28,752</td></tr><tr><td role="rowheader" scope="row">14</td><td>28,752</td><td>1,200</td><td>2,097</td><td>32,049</td></tr><tr><td role="rowheader" scope="row">15</td><td>32,049</td><td>1,200</td><td>2,327</td><td>35,577</td></tr><tr><td role="rowheader" scope="row">16</td><td>35,577</td><td>1,200</td><td>2,574</td><td>39,351</td></tr><tr><td role="rowheader" scope="row">17</td><td>39,351</td><td>1,200</td><td>2,839</td><td>43,389</td></tr><tr><td role="rowheader" scope="row">18</td><td>43,389</td><td>1,200</td><td>3,121</td><td>47,711</td></tr><tr><td role="rowheader" scope="row">19</td><td>47,711</td><td>1,200</td><td>3,424</td><td>52,334</td></tr><tr><td role="rowheader" scope="row">20</td><td>52,334</td><td>1,200</td><td>3,747</td><td>57,282</td></tr><tr><td role="rowheader" scope="row">21</td><td>57,282</td><td>1,200</td><td>4,094</td><td>62,576</td></tr><tr><td role="rowheader" scope="row">22</td><td>62,576</td><td>1,200</td><td>4,464</td><td>68,240</td></tr><tr><td role="rowheader" scope="row">23</td><td>68,240</td><td>1,200</td><td>4,861</td><td>74,301</td></tr><tr><td role="rowheader" scope="row">24</td><td>74,301</td><td>1,200</td><td>5,285</td><td>80,786</td></tr><tr><td role="rowheader" scope="row">25</td><td>80,786</td><td>1,200</td><td>5,739</td><td>87,725</td></tr><tr><td role="rowheader" scope="row">26</td><td>87,725</td><td>1,200</td><td>6,225</td><td>95,149</td></tr><tr><td role="rowheader" scope="row">27</td><td>95,149</td><td>1,200</td><td>6,744</td><td>103,094</td></tr><tr><td role="rowheader" scope="row">28</td><td>103,094</td><td>1,200</td><td>7,301</td><td>111,594</td></tr><tr><td role="rowheader" scope="row">29</td><td>111,594</td><td>1,200</td><td>7,896</td><td>120,690</td></tr><tr><td role="rowheader" scope="row">30</td><td>120,690</td><td>1,200</td><td>8,532</td><td>130,422</td></tr><tr><td role="rowheader" scope="row">31</td><td>130,422</td><td>1,200</td><td>9,214</td><td>140,836</td></tr><tr><td role="rowheader" scope="row">32</td><td>140,836</td><td>1,200</td><td>9,943</td><td>151,978</td></tr><tr><td role="rowheader" scope="row">33</td><td>151,978</td><td>1,200</td><td>10,722</td><td>163,901</td></tr><tr><td role="rowheader" scope="row">34</td><td>163,901</td><td>1,200</td><td>11,557</td><td>176,658</td></tr><tr><td role="rowheader" scope="row">35</td><td>176,658</td><td>1,200</td><td>12,450</td><td>190,308</td></tr><tr><td role="rowheader" scope="row">36</td><td>190,308</td><td>1,200</td><td>13,406</td><td>204,914</td></tr><tr><td role="rowheader" scope="row">37</td><td>204,914</td><td>1,200</td><td>14,428</td><td>220,542</td></tr><tr><td role="rowheader" scope="row">38</td><td>220,542</td><td>1,200</td><td>15,522</td><td>237,263</td></tr><tr><td role="rowheader" scope="row">39</td><td>237,263</td><td>1,200</td><td>16,692</td><td>255,156</td></tr><tr><td role="rowheader" scope="row">40</td><td>255,156</td><td>1,200</td><td>17,945</td><td>274,301</td></tr><tr><td role="rowheader" scope="row">41</td><td>274,301</td><td>1,200</td><td>19,285</td><td>294,786</td></tr><tr><td role="rowheader" scope="row">42</td><td>294,786</td><td>1,200</td><td>20,719</td><td>316,705</td></tr><tr><td role="rowheader" scope="row">43</td><td>316,705</td><td>1,200</td><td>22,253</td><td>340,158</td></tr><tr><td role="rowheader" scope="row">44</td><td>340,158</td><td>1,200</td><td>23,895</td><td>365,253</td></tr><tr><td role="rowheader" scope="row">45</td><td>365,253</td><td>1,200</td><td>25,652</td><td>392,105</td></tr><tr><td role="rowheader" scope="row">46</td><td>392,105</td><td>1,200</td><td>27,531</td><td>420,836</td></tr><tr><td role="rowheader" scope="row">47</td><td>420,836</td><td>1,200</td><td>29,543</td><td>451,579</td></tr><tr><td role="rowheader" scope="row">48</td><td>451,579</td><td>1,200</td><td>31,695</td><td>484,473</td></tr><tr><td role="rowheader" scope="row">49</td><td>484,473</td><td>1,200</td><td>33,997</td><td>519,671</td></tr><tr><td role="rowheader" scope="row">50</td><td>519,671</td><td>1,200</td><td>36,461</td><td>557,332</td></tr></table>