Portfolio Forecast

“Compound interest is the eighth wonder of the world.
He who understands it, earns it…
he who doesn’t… pays it”
Albert Einstein

Interest compounded yearly added at the end of each year

YearYear InterestTotal InterestBalance
(Capital growth per year) (How much you own) (Total portfolio)
1$100,000.00$100,000.00$2,100,000.00
2$105,000.00$205,000.00$2,205,000.00
3$110,250.00$315,250.00$2,315,250.00
4$115,762.50$431,012.50$2,431,012.50
5$121,550.63$552,563.13$2,552,563.13
6$127,628.16$680,191.28$2,680,191.28
7$134,009.56$814,200.85$2,814,200.85
8$140,710.04$954,910.89$2,954,910.89
9$147,745.54$1,102,656.43$3,102,656.43
10$155,132.82$1,257,789.25$3,257,789.25

Year Interest – You can see the first table represents the compounding interest per year on the total property portfolio. By year one you can see that the portfolio is growing by $100,000 but by year 5 your portfolio is growing by $155,000 due to the power of compounding interest.


Total Interest – It is showing you the total growth of your portfolio. The table above is showing that in year one you own $100,000 of the portfolio, but after 10 years you will own $1,257,789.25 of your portfolio assuming you paid interest only on all your loans.


Balance – Is the balance of your portfolio. As you can see we started off with a 2 million dollar portfolio and that same portfolio is now worth over 3.2 million due to the power of compounding interest.

Standard Calculation

Base amount: $2,000,000.00
Interest Rate: 5%
Effective Annual Rate: 5%
Calculation period: 10 years
Base portfolio would be around 6 properties worth about $330,000 each. (Total portfolio worth 2 million.)

Interest compounded yearly added at the end of each year

YearYear InterestTotal InterestBalance
(Capital growth per year) (How much you own) (Total portfolio)
1$120,000.00$120,000.00$2,120,000.00
2$127,200.00$247,200.00$2,247,200.00
3$134,832.00$382,032.00$2,382,032.00
4$142,921.92$524,953.92$2,524,953.92
5$151,497.24$676,451.16$2,676,451.16
6$160,587.07$837,038.22$2,837,038.22
7$170,222.29$1,007,260.52$3,007,260.52
8$180,435.63$1,187,696.15$3,187,696.15
9$191,261.77$1,378,957.92$3,378,957.92
10$202,737.48$1,581,695.39$3,581,695.39

Year Interest – You can see the first table represents the compounding interest per year on the total property portfolio. By year one you can see that the portfolio is growing by $100,000 but by year 5 your portfolio is growing by $155,000 due to the power of compounding interest.


Total Interest – It is showing you the total growth of your portfolio. The table above is showing that in year one you own $100,000 of the portfolio, but after 10 years you will own $1,257,789.25 of your portfolio assuming you paid interest only on all your loans.


Balance – Is the balance of your portfolio. As you can see we started off with a 2 million dollar portfolio and that same portfolio is now worth over 3.2 million due to the power of compounding interest.

Standard Calculation

Base amount: $2,000,000.00
Interest Rate: 6%
Effective Annual Rate: 6%
Calculation period: 10 years
Base portfolio of 6 properties worth about $330,000 each.
(Total portfolio worth 2 million.)

Interest compounded yearly added at the end of each year

YearYear InterestTotal InterestBalance
(Capital growth per year) (How much you own)(Total portfolio)
1$100,000.00$100,000.00$2,100,000.00
2$105,000.00$205,000.00$2,205,000.00
3$110,250.00$315,250.00$2,315,250.00
4$115,762.50$431,012.50$2,431,012.50
5$121,550.63$552,563.13$2,552,563.13
6$127,628.16$680,191.28$2,680,191.28
7$134,009.56$814,200.85$2,814,200.85
8$140,710.04$954,910.89$2,954,910.89
9$147,745.54$1,102,656.43$3,102,656.43
10$155,132.82$1,257,789.25$3,257,789.25
11$162,889.46$1,420,678.72$3,420,678.72
12$171,033.94$1,591,712.65$3,591,712.65
13$179,585.63$1,771,298.28$3,771,298.28
14$188,564.91$1,959,863.20$3,959,863.20
15$197,993.16$2,157,856.36$4,157,856.36

Year Interest – You can see the first table represents the compounding interest per year on the total property portfolio. By year one you can see that the portfolio is growing by $100,000 but by year 5 your portfolio is growing by $155,000 due to the power of compounding interest.


Total Interest – It is showing you the total growth of your portfolio. The table above is showing that in year one you own $100,000 of the portfolio, but after 10 years you will own $1,257,789.25 of your portfolio assuming you paid interest only on all your loans.


Balance – Is the balance of your portfolio. As you can see we started off with a 2 million dollar portfolio and that same portfolio is now worth over 3.2 million due to the power of compounding interest.

Standard Calculation

Base amount: $2,000,000.00
Interest Rate: 5%
Effective Annual Rate: 5%
Calculation period: 15 years
Based on 6 properties at $330,000 each

Interest compounded yearly added at the end of each year


Example portfolio

Base amount: $2,000,000.00
Interest Rate: 6%
Average Annual Growth Rate: 6%
Calculation period: 15 years
Based on 6 properties at $330,000 each.


YearYear InterestTotal InterestBalance
15$271,308.47$2,793,116.39$4,793,116.39
1$120,000.00$120,000.00$2,120,000.00
2$127,200.00$247,200.00$2,247,200.00
3$134,832.00$382,032.00$2,382,032.00
4$142,921.92$524,953.92$2,524,953.92
5$151,497.24$676,451.16$2,676,451.16
6$160,587.07$837,038.22$2,837,038.22
7$170,222.29$1,007,260.52$3,007,260.52
8$180,435.63$1,187,696.15$3,187,696.15
9$191,261.77$1,378,957.92$3,378,957.92
10$202,737.48$1,581,695.39$3,581,695.39
11$214,901.72$1,796,597.12$3,796,597.12
12$227,795.83$2,024,392.94$4,024,392.94
13$241,463.58$2,265,856.52$4,265,856.52
14$255,951.39$2,521,807.91$4,521,807.91

Year Interest – You can see the first table represents the compounding interest per year on the total property portfolio. By year one you can see that the portfolio is growing by $120,000 but by year 15 your portfolio is growing by $271,308 due to the power of compounding interest.


Total Interest – It is showing you the total growth of your portfolio. The table above is showing that in year one you own $120,000 of the portfolio, but after 15 years you will own $2,793,116 of your portfolio assuming you paid interest only on all your loans.


Balance – Is the balance of your portfolio. As you can see we started off with a 2 million dollar portfolio and that same portfolio is now worth $4,793,116 due to the power of compounding interest.