Investing 500 a month at an assumed 7% a year grows to 588,032 after 30 years. Of that, 180,000 is the money paid in and 408,032 is growth.
Growth compounds: what each month earns is added to the balance and earns in later months too. That is why the last ten years add 332,829, more than the whole of the first twenty, which reach 255,203. Investing a fixed amount on a schedule like this is called a SIP (systematic investment plan) in India.
After 10, 20 and 30 years
What has been paid in, what it is worth, and the difference:
| After (years) | Paid in | Worth | Growth |
|---|---|---|---|
| 10 | 60,000 | 86,009 | 26,009 |
| 20 | 120,000 | 255,203 | 135,203 |
| 30 | 180,000 | 588,032 | 408,032 |
What the example leaves out
The 7% is an assumption for the example, not a forecast. Real returns vary from year to year, can be negative for long stretches, and are reduced by fees and taxes.