Finance

Find what savings will grow to

How it works in Excel

• B1/12 turns the yearly return into a monthly return.
• B2*12 turns the years into months.
• -B3 is the amount added each month.
• To include money you already have, add it as a fourth item, also with a minus sign.
• This assumes the same return every period, which real investments will not deliver.

The idea in general

Money earns a return, and then that return earns a return too. That is compound growth.

What I assumed

• The yearly return is in B1, the years are in B2 and the monthly amount is in B3.

Check the result on your own data before relying on it.