← Back to the archive
Tool · Compounding Model
20-Year Growth Projection
A hypothetical illustration of long-horizon retirement-account compounding: a $5,000 initial investment plus $20,000 added at the end of each year, for 20 years. Growth runs above 15% for the first 15 years, then steps down to a flat 10% for the final five — landing on a precise 15.0% average across the full two decades. This is a model, not a forecast.
Initial Investment
$5,000
Annual Contribution
$20,000
Years 1–15 Avg. Return
16.67%
Years 16–20 Return
10.0%
20-Yr Average Return
15.0%
Ending Balance
$1.96M
Account Balance Over 20 Years
Ending Balance Step-down to 10% (Year 16)
Year-by-Year Amortization
This is a hypothetical, illustrative model only and does not represent the performance of any actual investment, fund, or account, and is not a forecast, projection, or guarantee of future returns. Actual market returns vary year to year and may be negative in any given year; a flat or smoothly declining rate sequence like this one does not occur in real markets. This tool is for educational purposes only and does not constitute financial, tax, or investment advice. Contribution limits for IRAs and 401(k)s are set annually by the IRS and may be lower than the amounts modeled here. Consult a qualified financial professional before making investment decisions.