Compound Interest: Why Starting at 25 vs 35 Changes Everything
A 10-year head start can double your retirement balance. Here's the math, with charts.
June 4, 20265 min read
Albert Einstein supposedly called compound interest the eighth wonder of the world. Whether or not he did, the math doesn't lie.
Invest $500/month from age 25 to 65 at a 7% annual return and you end with roughly $1.31M. Start at 35 instead, and you end with about $610k — less than half.
The lesson: time in the market beats timing the market. Even small, automatic contributions to an index fund in your 20s outperform large lump sums in your 40s.
Use our Compound Interest Calculator to model your own scenario.
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