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Compound Capital

 

What is the difference in outcome if capital remains utilised over a longer time period? Below is a direct comparison of capital amounts which are generated when comparing non-compounding and compounding. We are strong believers that if an individual or business is able to compound their capital they should as the numbers don't lie.

Table A: Non-compounded return fixed at 8% per annum over a 25 year period.

Outcome: 
£300,000

Table B: Compounded return fixed at 8% per annum over a 25 year period.

Outcome: 
£684,848

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