Tools · Wealth Multiplier
Wealth multiplier.
What $1 invested today becomes at 65.
Every year of delay reduces what each dollar becomes at retirement. Enter your age and assumed return to see your personal multiplier and the cost of waiting one more year.
Worked example: At age 25, $1 invested today becomes approximately $45 by age 65 at 10% nominal return: a 45x multiplier. At age 35, the same $1 becomes $17. Waiting 10 years costs roughly 28 multiplier points on every dollar. The arithmetic is identical at any return assumption; the multipliers compress at lower rates.
YOUR INPUTS
10% is the long-run S&P 500 nominal average. 7-8% is more conservative. Subtract 2-3% for inflationinflationA general increase in prices over time, meaning each dollar buys less than it did before.Full definition to estimate real purchasing powerpurchasing powerWhat a dollar can actually buy, not what the dollar number says. A 1971 dollar bought a gallon of gas. Today's dollar buys roughly a third of one. Same dollar, much less buying ability.Full definition.
RESULTS
YOUR MULTIPLIER
0x
Every $1 invested today becomes $0 by age 65.
START NOW
$0
START IN 1 YEAR
$0
COST OF WAITING ONE YEAR
$0
MULTIPLIER BY STARTING AGE
How this tool works
- Multiplier formula: (1+r)^n where r is the annual rate and n is years from current age to retirement age.
- Future value of monthly investment: PMT × ((1+r/12)^(12n) - 1) / (r/12), the standard ordinary-annuity formula.
- The "cost of waiting one year" is the difference between starting today and starting one year later, holding the monthly amount constant.
- Returns shown are nominal (before inflation). Subtract 2-3% from your return assumption to estimate real purchasing power.
- Past returns are not a guarantee of future performance. The S&P 500 has averaged roughly 10% nominal since 1928, but individual decade returns range from negative to over 17%.
Related
Not financial advice. Calculator illustrates compound interestcompound interestEarning interest on your interest. Your returns reinvested to earn even more returns over time.Full definition math; past returns do not guarantee future results.