Question 1

What does $1,000 grow to at 6% for 20 years?

Accepted Answer

$1,000 invested at 6% annual compound interest for 20 years grows to $3,207. Your original investment earns $2,207 in interest — a 220.7% total return and a 3.21× multiplier on your money.

Question 2

How long does it take to double money at 6%?

Accepted Answer

At 6% annual compound interest, your money doubles approximately every 12 years (the Rule of 72: 72 ÷ 6 = 12). Over 20 years, $1,000 has the potential to double 1.7 times.

Question 3

Is 6% a realistic return?

Accepted Answer

6% is a moderate return that aligns with long-term historical averages for diversified share portfolios. The ASX 200 has returned around 9–10% p.a. including dividends historically, so 6% is realistic over long periods after accounting for fees and portfolio mix.

Question 4

What's the effect of adding regular contributions?

Accepted Answer

These figures show a one-time lump sum of $1,000 with no additional contributions. Adding regular contributions compounds the growth dramatically. For example, adding $200/month to $1,000 at 6% for 20 years would result in a significantly larger final balance. Use the interactive calculator above to model your own contribution amount.

Question 5

How does inflation affect this result?

Accepted Answer

This calculator shows nominal returns — the dollar figures before adjusting for inflation. Australia's historical inflation rate is around 2–3% per year. To estimate real purchasing power, subtract the inflation rate from your return: at 6% return and 2.5% inflation, your real return is approximately 3.5% p.a. In real terms, $3,207 in 20 years would buy meaningfully less than it does today.

Year	Balance	Interest
Yr 1	$1,060	+$60
Yr 2	$1,124	+$64
Yr 3	$1,191	+$67
Yr 4	$1,262	+$71
Yr 5	$1,338	+$76
Yr 6	$1,419	+$80
Yr 7	$1,504	+$85
Yr 8	$1,594	+$90
Yr 9	$1,689	+$96
Yr 10	$1,791	+$101
Yr 11	$1,898	+$107
Yr 12	$2,012	+$114
Yr 13	$2,133	+$121
Yr 14	$2,261	+$128
Yr 15	$2,397	+$136
Yr 16	$2,540	+$144
Yr 17	$2,693	+$152
Yr 18	$2,854	+$162
Yr 19	$3,026	+$171
Yr 20	$3,207	+$182

Rate	Final balance	Interest earned	Multiplier
4%	$2,191	$1,191	2.19×
5%	$2,653	$1,653	2.65×
6% ◀	$3,207	$2,207	3.21×
7%	$3,870	$2,870	3.87×
8%	$4,661	$3,661	4.66×
9%	$5,604	$4,604	5.60×
10%	$6,727	$5,727	6.73×

Year	Balance	Interest this year	Total interest	Growth
Year 1	$1,060	+$60	$60	1.06×
Year 2	$1,124	+$64	$124	1.12×
Year 3	$1,191	+$67	$191	1.19×
Year 4	$1,262	+$71	$262	1.26×
Year 5	$1,338	+$76	$338	1.34×
Year 6	$1,419	+$80	$419	1.42×
Year 7	$1,504	+$85	$504	1.50×
Year 8	$1,594	+$90	$594	1.59×
Year 9	$1,689	+$96	$689	1.69×
Year 10	$1,791	+$101	$791	1.79×
Year 11	$1,898	+$107	$898	1.90×
Year 12	$2,012	+$114	$1,012	2.01×
Year 13	$2,133	+$121	$1,133	2.13×
Year 14	$2,261	+$128	$1,261	2.26×
Year 15	$2,397	+$136	$1,397	2.40×
Year 16	$2,540	+$144	$1,540	2.54×
Year 17	$2,693	+$152	$1,693	2.69×
Year 18	$2,854	+$162	$1,854	2.85×
Year 19	$3,026	+$171	$2,026	3.03×
Year 20	$3,207	+$182	$2,207	3.21×

Year	Balance	Interest
Yr 1	$1,060	+$60
Yr 2	$1,124	+$64
Yr 3	$1,191	+$67
Yr 4	$1,262	+$71
Yr 5	$1,338	+$76
Yr 6	$1,419	+$80
Yr 7	$1,504	+$85
Yr 8	$1,594	+$90
Yr 9	$1,689	+$96
Yr 10	$1,791	+$101
Yr 11	$1,898	+$107
Yr 12	$2,012	+$114
Yr 13	$2,133	+$121
Yr 14	$2,261	+$128
Yr 15	$2,397	+$136
Yr 16	$2,540	+$144
Yr 17	$2,693	+$152
Yr 18	$2,854	+$162
Yr 19	$3,026	+$171
Yr 20	$3,207	+$182

$1,000 at 6% for 20 Years

How $1,000 grows at 6%

Year-by-year projection

Growth chart

Frequently asked questions

Explore other scenarios

Related calculators