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EXPLAINER

Rate Lens: See how small annual gaps compound

By · Editorial standards · Updated July 29, 2026

Rate Lens shows how a small difference between a goal's Cost CAGR and an illustrative Portfolio CAGR can become a large future affordability gap over time, at these assumptions. Both curves begin from the same amount so the effect of the two rates stays visible.

RATE LENS

See what a few points become.

Both curves start from the same illustrative amount. Change one assumption at a time and watch the paths separate.

Illustrative starting amount for both curves.

Editable assumption from −25% to 50%.

Illustrative assumption, not a recommended return.

Whole years from 1 to 60.

Future cost at these assumptions $466,096
Projected resources at these assumptions $265,330
Dollar gap at these assumptions −$200,766
Coverage at these assumptions 56.9%
Annual rate gap at these assumptions −3.00 pts

The curves share a starting point. Their compounding rates determine the distance between them.

Future cost Projected resources

Resources fall short of the future cost by $200,766 at these assumptions — a headwind over 20 years.

Prices show a point. Rates show a path.

A future cost can rise while the resources aimed at it also rise. The balance alone does not tell you whether the future moved closer. The comparison depends on which path compounds faster.

Rate Lens isolates that comparison. The cost curve and resource curve deliberately start from the same illustrative amount. Change the amount, Cost CAGR, Portfolio CAGR, or timeline and the tool redraws both paths at these assumptions.

The annual rate gap is:

Portfolio CAGR − Cost CAGR

A negative result is a headwind: the modeled future cost compounds faster than the modeled resources. A positive result is a tailwind: the resources compound faster. A zero result means the two paths match exactly at these assumptions.

What the defaults mean

The defaults are illustrative and editable. They are not forecasts or source-derived market estimates. The starting amount is used for both curves only to make rate divergence legible.

All figures are nominal. The projected-resource path excludes contributions and withdrawals. The model also excludes taxes, fees, and investment volatility. Portfolio CAGR is a user-entered assumption, not a recommended return, allocation, security, or strategy.

That simplicity is the point of the lens. It shows one mechanism clearly before a fuller plan adds savings flows, multiple goals, taxes, or other real-world details.

The math

Rate Lens uses three equations:

The straight-line comparison is optional and visual only. It connects the starting amount with the modeled future cost without changing the compound-growth results.

Every output is an educational estimate at these assumptions. The figures are not predictions or financial, investment, tax, legal, or insurance advice.

Use the table beneath the chart to inspect every yearly cost and resource value. Then calculate Aspire Rate for the future you are pricing, or read the full methodology for source windows, formulas, and limitations.

See methodology →