Finance & Investment Calculators

The debt snowball method has you list all debts from smallest to largest balance, pay minimums on everything, then put all extra money toward the smallest debt first. When that debt is eliminated, you roll that payment to the next smallest. Research (including a Harvard Business Review study) confirms that the small wins of eliminating accounts keep most people more motivated than the mathematically optimal avalanche method, resulting in better real-world outcomes.

Coast FIRE is the point at which your current investments will grow to your retirement target by a specific age without any additional contributions, assuming a standard market return. Once you reach Coast FIRE, you only need to earn enough to cover current living expenses, not save for retirement. It is a popular milestone for people who want to reduce work stress before traditional retirement age.

Compound interest means you earn returns on both your principal and previously earned returns. A $10,000 investment at 7% annual return becomes $19,672 after 10 years, $38,697 after 20 years, and $76,123 after 30 years, without adding a single dollar more. Time in the market is the single biggest driver of compound growth, which is why starting early matters far more than the amount.

Financial planners commonly use 6-7% real (inflation-adjusted) return for a diversified US stock portfolio, based on historical S&P 500 averages going back to 1928. For nominal projections before subtracting inflation, 8-10% is common. For conservative planning or portfolios that include bonds, 5% real is a reasonable assumption. Always run multiple scenarios rather than relying on a single projection.