Compound Interest Guide
How to Read a Yearly Projection Table
Understand starting balance, contributions, interest earned, and ending balance in a compound interest table.
Starting balance
The starting balance is the amount at the beginning of a year. It includes the previous year's ending balance.
As compounding continues, this number usually grows if returns are positive and withdrawals are not made.
Contributions and interest
Contributions show how much money was added during the year. Interest earned shows how much growth came from the assumed return.
Separating these columns helps users see whether growth is coming mainly from deposits or from compounding.
Ending balance
The ending balance is the result after contributions and interest for that year. It becomes the next year's starting balance.
Reading the table from top to bottom shows the growth path instead of only the final result.