Questions about money, answered with arithmetic
Short worked examples on loans, investing, fees, inflation and withdrawals, with every figure calculated from stated inputs.
How much of a loan payment goes to interest?
See how a fixed monthly loan payment is divided between interest and principal as the balance changes.
How much does paying extra on a loan save?
Compare a regular monthly loan payment with the same payment plus an extra amount toward principal.
How much does a 1% annual fee cost over time?
An example comparing the projected balance with no annual fee and with a 1% annual fund fee.
How quickly does inflation reduce what money buys?
See how a stated inflation rate changes the cost of a basket and the purchasing power of a fixed amount.
How much does investing a fixed amount every month grow to?
What 500 a month becomes over 10, 20 and 30 years at an assumed 7% a year, and how much of it is growth.
How much does starting to invest ten years earlier matter?
The same monthly amount, the same assumed return and the same end date, started ten years apart.
How long does it take for money to double?
The year 10,000 first reaches double at 4%, 6%, 8% or 10% a year, beside the rule of 72 estimate.
How long do savings last with a fixed monthly withdrawal?
How long 300,000 lasts at an assumed 5% a year when 1,500, 2,000 or 2,500 is taken out every month.