How Compound Interest Can Help You Retire a Millionaire -- Even on a Modest Income

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Selena Maranjian, The Motley FoolSun, November 2, 2025 at 6:05 PM GMT+1 5 min readThe potentially explosive power of compounded growth is a matter of simple math.You'll need significant regular investments, a solid growth rate, and time.Multiple people of very limited means have become multimillionaires through stock investing.The $23,760 Social Security bonus most retirees completely overlook ›"Money makes money. And the money that money makes, makes money." That quotation, attributed to Benjamin Franklin, is all about the power of compounding, whether it's compound interest or the compounded growth of stocks.The phenomenon of compounding is available to us to help us build fat retirement savings accounts. Here's a look at how you might use it.Image source: Getty Images.Before explaining more about compounding, here's a little inspiration: Know that plenty of people of very limited means have been able to become millionaires or multimillionaires thanks to compounding.I've written about these extraordinary ordinary people before -- people such as these.Ronald Read: Mr. Read was a Vermonter who worked as a janitor and a gas station attendant. He lived frugally and quietly invested his money. According to a Wall Street Journal report, he owned at least 95 different stocks when he died in 2014, including JPMorgan Chase, CVS Health, and Procter & Gamble -- and he reportedly collected $20,000 monthly in dividends from them! Mr. Read made news when he donated $6 million to his local library and hospital.Here's more inspiration -- look at how you might amass a million or millions -- if you sock away $1,000 per month into stocks:Investing $1,000 per month ($12,000 annually) forGrowing at 8% annuallyGrowing at 10% annuallyGrowing at 12% annually5 years$70,399$73,261$76,23410 years$173,839$191,249$210,58515 years$325,825$381,270$447,35720 years$549,144$687,300$864,62925 years$877,271$1,180,165$1,600,00630 years$1,359,399$1,973,928$2,895,99235 years$2,067,802$3,252,292$5,179,96240 years$3,108,678$5,311,111$9,205,097Source: Calculations via Investor.gov's calculator.See? Over long periods, even relatively small investments can grow like gangbusters.The magic of compound growth is dependent on three factors:How much you can invest.How quickly your money grows.How many years your money has to grow.Here's a closer look at each.You may not be able to sock away $1,000 per month, but whatever you can invest can help you eventually amass substantial sums. If you can invest more than $1,000 each month, I encourage you to do so -- especially because your earliest invested dollars are your most powerful ones, with the most time in which to grow for you.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,850.75 -32.00 (-0.46%)Dow Futures47,318.00 -155.00 (-0.33%)Nasdaq Futures25,924.25 -179.00 (-0.69%)Russell 2000 Futures2,469.40 -10.30 (-0.42%)VIX17.17 -0.27 (-1.55%)Gold3,999.60 -14.40 (-0.36%)PortfolioSign in to access your portfolioSign inTop gainersCIFR Cipher Mining Inc. 22.76 +4.11 (+22.04%)AMKR Amkor Technology, Inc. 37.84 +5.56 (+17.22%)LUMN Lumen Technologies, Inc. 11.83 +1.55 (+15.08%)IDXX IDEXX Laboratories, Inc. 722.94 +93.43 (+14.84%)FRPT Freshpet, Inc. 56.25 +7.04 (+14.31%)Top losersQURE uniQure N.V. 34.29 -33.40 (-49.34%)RGC Regencell Bioscience Holdings Limited 13.56 -3.09 (-18.56%)KMB Kimberly-Clark Corporation 102.27 -17.44 (-14.57%)UUUU Energy Fuels Inc. 17.80 -2.71 (-13.21%)QS QuantumScape Corporation 16.21 -2.23 (-12.09%)Most activeKVUE Kenvue Inc. 16.14 +1.77 (+12.32%)NVDA NVIDIA Corporation 206.88 +4.39 (+2.17%)CIFR Cipher Mining Inc. 22.76 +4.11 (+22.04%)PFE Pfizer Inc. 24.66 +0.01 (+0.04%)ONDS Ondas Holdings Inc. 6.15 -0.29 (-4.50%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersPLTR Palantir Technologies Inc. 207.18 +6.71 (+3.35%)KMB Kimberly-Clark Corporation 102.27 -17.44 (-14.57%)SRPT Sarepta Therapeutics, Inc. 24.45 +0.44 (+1.83%)XRP-USD XRP USD 2.35 -0.09 (-3.50%)KVUE Kenvue Inc. 16.14 +1.77 (+12.32%)Top economic events