Paycheck investing

How much will $200 a paycheck grow if you invest it?

$200 doesn't sound like much. But invested every paycheck for decades, it can grow into hundreds of thousands, or even millions, of dollars.

Key points

  • How often you're paid changes how much you invest in a year.
  • Time is the biggest factor. The last 10 years usually add the most money.
  • These tables use example rates of 8% and 10% a year, which are close to long-run stock market averages.

How much do you invest each year?

PaidPaychecks a year$200 each = per year
Monthly12$2,400
Biweekly (every 2 weeks)26$5,200
Weekly52$10,400

At 8% a year

Paid10 years20 years30 years40 years
Monthly$36,025$113,800$281,710$644,216
Biweekly$78,189$246,993$611,428$1,398,215
Weekly$156,494$494,351$1,223,761$2,798,501

At 10% a year

Paid10 years20 years30 years40 years
Monthly$39,973$143,652$412,569$1,110,070
Biweekly$86,793$311,913$895,814$2,410,304
Weekly$173,746$624,397$1,793,272$4,825,031

Each deposit is added at the end of the pay period and grows at a steady yearly rate. Real markets go up and down. Taxes and inflation aren't included.

Why the later years add so much

Look at biweekly at 10%. In the first 10 years, you grow to about $87,000. Between years 30 and 40, you add about $1.5 million. You didn't invest more. Your earlier money just had more time to grow. That's compound interest.

Where should the $200 go?

Tips to make it automatic

Try your own paycheck amount and see when you could retire.

Open the calculator

Quick answers

How much will $200 a month be worth in 30 years?

At 8% a year, about $282,000. At 10% a year, about $413,000. Results depend on the real returns you get.

Is it better to invest weekly or monthly?

The total per year matters most. Investing more often gets money working a little sooner, which helps slightly. Match it to your paycheck.

What's a realistic return for an index fund?

U.S. stocks have averaged around 10% a year over very long periods, before inflation. Some decades are much better or worse.

Can I start with $200 a paycheck?

Yes. Many brokers have no minimums and let you buy fractional shares, so you can invest any amount.

Sources

Keep learning

This article is for learning only. It is not financial, tax or legal advice. Example returns are not promises. Talk to a licensed professional about your own situation.