Estimate total assets, principal, and returns after regular investment and compound growth.
Compound Interest
Compound interest means interest earned each period is added to the principal, and the next period earns interest on the new total. In contrast, simple interest only applies to the original principal. Over the long term, compounding enables exponential growth.
DCA (regular fixed-amount investing) averages out purchase costs and reduces timing risk — you avoid buying everything at a market peak. It suits most ordinary investors who don't have time to watch the market, and long-term DCA typically yields near-market-average returns.
The Rule of 72 is a quick way to estimate how many years it takes to double your money: years ≈ 72 ÷ annual return. For example, at 6% annually, doubling takes roughly 72÷6=12 years. It provides an intuitive sense of compound growth and the importance of return rates.