What happens when you invest $100/month at 7% for 10 years?
If you invest $100 per month consistently at an expected annual return of 7% for 10 years, your portfolio grows to $17,308. You will have contributed $12,000 of your own money, and compounding will have added $5,308 in growth — a 1.44x multiple on your contributions.
After a typical 0.5% annual management fee, the final value is approximately $16,840. The total fee cost over 10 years is $468 — 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 7% annual return compounded monthly. Actual investment returns vary year-to-year and cannot be guaranteed. Use the interactive calculator to model different assumptions.