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Contribution escalation

Contribution escalation grows the contribution itself over time — commonly to track a rising income — which compounds on top of the return earned on the balance. Even a modest escalation percentage meaningfully changes the projected final balance over a long horizon, since later, larger contributions have less time to compound but there are more of them.

FV with escalation = Σₜ Pₜ × (1+r)^(n−t), where Pₜ = P₀ × (1+g)^t

This explains what contribution escalation measures. It isn't investment advice — see the disclaimer.