Compounding Calculator
Move the sliders and watch which input actually changes the outcome. It is almost never the one people expect.
Your numbers
After 10 years
PKR 2,630,426
- You put in
- PKR 1,300,000
- Growth added
- PKR 1,330,426
51% of that final figure is growth rather than money you contributed. Lengthen the time horizon and watch that share move, it moves far more than the return rate does.
This is arithmetic, not a forecast. The return rate is the figure you chose: we are not projecting it, and no market delivers the same return every year. Real returns arrive unevenly, which is exactly why the behavioural side of investing matters more than the spreadsheet.
What the numbers mean
Time does more work than returns.
Try this: set the return rate to 12% and the horizon to 10 years, and note the growth figure. Now leave the rate alone and change the horizon to 20 years. The result does not double, it grows by considerably more.
Then go back and try the opposite. Keep the horizon at 10 years and raise the return from 12% to 15%. The improvement is real, but it is far smaller than what the extra decade produced.
This is the single most useful thing a beginner can internalise, because it reorders the priorities. Chasing an extra few percent of return is where most people direct their effort, and where most of them lose money trying. Starting earlier and continuing for longer requires no skill at all.
What this calculator does not do
It assumes a constant return, applied evenly. No market behaves that way. Real returns arrive in bursts and drawdowns, and the sequence matters, particularly if you need to withdraw money during a bad stretch.
It also ignores inflation, taxes, and transaction costs, all of which are real and all of which reduce what you actually keep. Treat the output as an illustration of how compounding behaves, not as a projection of your account balance.
And the return rate is your assumption, not our forecast. We do not publish expected returns, because nobody can know them, and anyone who tells you otherwise is selling something.
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