Question 1

What does $100,000 grow to at 8% for 5 years?

Accepted Answer

$100,000 invested at 8% annual compound interest for 5 years grows to $146,933. Your original investment earns $46,933 in interest — a 46.9% total return and a 1.47× multiplier on your money.

Question 2

How long does it take to double money at 8%?

Accepted Answer

At 8% annual compound interest, your money doubles approximately every 9 years (the Rule of 72: 72 ÷ 8 = 9). Over 5 years, $100,000 has the potential to double 0.6 times.

Question 3

Is 8% a realistic return?

Accepted Answer

8% 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 8% 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 $100,000 with no additional contributions. Adding regular contributions compounds the growth dramatically. For example, adding $200/month to $100,000 at 8% for 5 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 8% return and 2.5% inflation, your real return is approximately 5.5% p.a. In real terms, $146,933 in 5 years would buy meaningfully less than it does today.

Year	Balance	Interest
Yr 1	$108,000	+$8,000
Yr 2	$116,640	+$8,640
Yr 3	$125,971	+$9,331
Yr 4	$136,049	+$10,078
Yr 5	$146,933	+$10,884

Rate	Final balance	Interest earned	Multiplier
4%	$121,665	$21,665	1.22×
5%	$127,628	$27,628	1.28×
6%	$133,823	$33,823	1.34×
7%	$140,255	$40,255	1.40×
8% ◀	$146,933	$46,933	1.47×
9%	$153,862	$53,862	1.54×
10%	$161,051	$61,051	1.61×

Year	Balance	Interest this year	Total interest	Growth
Year 1	$108,000	+$8,000	$8,000	1.08×
Year 2	$116,640	+$8,640	$16,640	1.17×
Year 3	$125,971	+$9,331	$25,971	1.26×
Year 4	$136,049	+$10,078	$36,049	1.36×
Year 5	$146,933	+$10,884	$46,933	1.47×

Year	Balance	Interest
Yr 1	$108,000	+$8,000
Yr 2	$116,640	+$8,640
Yr 3	$125,971	+$9,331
Yr 4	$136,049	+$10,078
Yr 5	$146,933	+$10,884

$100,000 at 8% for 5 Years

How $100,000 grows at 8%

Year-by-year projection

Growth chart

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