The Money Mustache Community

Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: cdiggs on June 12, 2013, 08:49:35 AM

Title: How Does MMM Calculate Savings Compounded Over X Years?
Post by: cdiggs on June 12, 2013, 08:49:35 AM

Hi I'm a newbie to the MMM blog; I discovered the site through an article in the Washington Post recently.  I keep seeing examples that he uses to show investing X dollars compounds into Y dollars over ten years or some other time period and I don't know how he arrives at these numbers.  Can anyone provide the formula that he uses?  For example in the "Killing Your $1000 Grocery Bill" post, he states that investing $579/month of grocery savings would compound into $102,483.00 every ten years.  How did he arrive at that number?

On a side note, I think other newbies may also find themselves wondering this very thing.  I think it would be great to see this explanation linked in either the "How To..." menu of the site or kept at the top of one of the forum categories.  If kept within the forum, perhaps it and other FAQs could be made part of the "Welcome - Read Me First" forum post.

Thanks!

Title: Re: How Does MMM Calculate Savings Compounded Over X Years?
Post by: Spork on June 12, 2013, 08:59:46 AM

There are lots of them.   Here's one. (http://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php)

Just plug a number in, number of years... expected interest rate and BING.