The Compounding Gap

Change the savings amount, return, time horizon, and target value to see how early dollars can keep working long after new contributions stop.

Scenario

Annual contribution

Average return

Final age

Target value

Contribution timing

Early start age

Early stop age

Later start age

Later stop age

Balance by age

The target line is adjustable; the selected comparison is recalculated on every change.

Early saver Later saver Target

Scenario table

Balances use annual compounding with the selected contribution timing.

Scenario	Contrib.	Final	Target age

Selected matrix cell

The default cell uses $5,000 per year at 8%.

Early window: 25-35
Later window: 35-65
Total contribution gap: $0
Return multiple: 0.0x

Reading the result

Early contributions have fewer dollars in, but more years exposed to compounding. Later contributions add more principal, but each dollar has less time to work.

Model caveats: This is an educational compounding model. It ignores taxes, fees, inflation, contribution limit rules, cash drag, sequence-of-return volatility, and behavioral risk. It is not investment advice or a forecast.

The Compounding Gap

Balance by age

Contribution and return matrix