Why a small edge in annual return snowballs
Three percentage points a year sounds trivial. Held for decades, it isn’t — compounding multiplies the gap. The calculator below pits two annual returns against each other, pre-loaded with ingruc’s real CAGR versus the S&P 500. Change any number and watch the two curves separate.
After 10 years, a $10,000 stake becomes
A +4.5-point higher annual return, compounded over 10 years, turns the same $10,000 stake into 1.5× as much.
These are the real figures — ingruc’s 19.3% CAGR and the S&P 500’s 14.8%. See them on the live performance page
Try your own numbers
Compounding assumes a constant annual return with no contributions, fees or taxes — a smooth illustration, not a forecast. Real returns arrive unevenly. Seeded from live data as of 20 September 2026.
Want the reasoning, not just the numbers? Read what compounding is for why time beats size — and why costs and taxes compound by the same mechanics, in reverse. Or see the edge in the wild on the live performance page. Just want to work out one investment’s yearly rate? Use the simple CAGR calculator.
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