Invest a certain amount of money per year in mutual funds or index stocks. Each year the principal will increase in value. For this calculator the amount of increase is called the "gain". The ending balance is calculated by adding the ending balance of the previous year to the gain in value, plus the annual deposit. The output will display a table depending on how many years the money is allowed to grow. Other variables apply: Mutual funds/index stocks typically gain 10% per year. However, investing in the stock market is still a calculated risk. Also, annual deposit may not always remain steady - it may rise or fall.
Note: The initial value of $3690 was chosen because it yields a balance of $1,000,000 after 35 years.