Compound vs Linear Returns
Two curves over 30 years - the compounding investor pulling away from the linear saver, with milestone markers.
A free, animated compound vs linear returns you can read here or embed on any website, from Scrollchart.
Two curves diverge across a 30-year horizon. The linear curve represents a saver who deposits a fixed amount each year and earns no return on accumulated savings: the balance grows as a straight line. The compound curve represents an investor who deposits the same amount but earns a return on every prior year's accumulated balance: the curve bends upward, slowly at first and then steeply. By year 30, the gap between them represents the time value of money made visible.
At a 7% annual return with $500 monthly contributions, the linear saver accumulates $180,000 over 30 years. The compound investor accumulates approximately $567,000. The difference of roughly $387,000 was not saved from income: it was generated by returns compounding on prior returns.
The future value of a regular investment (an annuity) is FV = P * [(1 + r)^n - 1] / r, where P is the periodic contribution, r is the return per period, and n is the number of periods. For monthly contributions of $500 at 7% annual return (r = 0.07/12 per month) over 360 months, this gives approximately $567,000.
The linear equivalent is simply P * n: $500 * 360 = $180,000. Every dollar of gap between these two values is compound growth. The diagram makes the formula tangible: the vertical distance between the two curves at any point in time equals the cumulative effect of reinvested returns up to that moment.
Good for
- Personal-finance bloggers and FIRE writers
- Robo-advisor content marketing
- Retirement planning explainers
Source & accuracy
Computed live from props; assumes constant contribution and annualized return.
Frequently asked questions
- Where can I get a free animated "Compound vs Linear Returns" for my website?
- Scrollchart provides "Compound vs Linear Returns" as a free, embeddable animated diagram you can add to any website with one line of HTML. No signup is required and there is no watermark. The diagram and its explainer text are served from scrollchart.com, so the embed stays current without any maintenance on your end.
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- Copy the embed snippet from the Scrollchart page for this diagram and paste it anywhere in your article HTML. It is compatible with WordPress, Webflow, Ghost, Substack, and static HTML pages. No account or API key is needed.
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