Watch Your Money Grow Year by Year
Frequently Asked Questions
How much will I have if I invest $1,000 a month for 20 years?
Investing $1,000 per month for 20 years at an 8% average return will grow to approximately $589,020. You'll have invested $240,000, and compound interest adds an extra $349,020 in gains!
What if I can only invest $500 a month?
$500/month at 8% for 20 years grows to about $294,510. While that's half of $1,000/month, it's still nearly $55,000 more than you invested. Start where you can and increase over time!
Is 8% return realistic?
The S&P 500 has historically returned about 10% annually before inflation, or roughly 7-8% after inflation. While past performance doesn't guarantee future results, 8% is a reasonable long-term assumption for a diversified stock portfolio.
How does compound interest work with monthly investments?
Each month's $1,000 investment starts earning returns immediately. Your first month's investment has the longest time to compound, while later contributions add to the growing total. The formula accounts for each contribution's individual growth.
Where should I invest $1,000 a month?
Consider tax-advantaged accounts first: max out your 401(k) match, then consider a Roth IRA ($7,000/year limit in 2026). After that, a taxable brokerage account with low-cost index funds is a great option.