What happens when you invest $100/month at 12% for 10 years?
If you invest $100 per month consistently at an expected annual return of 12% for 10 years, your portfolio grows to $23,004. You will have contributed $12,000 of your own money, and compounding will have added $11,004 in growth — a 1.92x multiple on your contributions.
After a typical 0.5% annual management fee, the final value is approximately $22,340. The total fee cost over 10 years is $664 — a reminder that low-cost index funds with fees of 0.03-0.1% preserve significantly more of your returns.
These figures assume a constant 12% annual return compounded monthly. Actual investment returns vary year-to-year and cannot be guaranteed. Use the interactive calculator to model different assumptions.