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How Compound Growth Works

See why time can matter as much as the amount you start with.

Investing Basics · 4 min

Step 1

Compounding means future growth can happen on both your original money and previous growth.

Step 2

Returns are not guaranteed, and investments can lose value, so a calculator is only an illustration.

Step 3

The useful takeaway is that consistent contributions and time can have a meaningful effect on long-term outcomes.

Try this: Experiment with the Compound Growth calculator in Money Tools.

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