Investment Calculator
Calculate investment returns and growth
Investment Calculator
How to Use
- Enter your initial investment amount
- Specify monthly contributions (if any)
- Set the investment time period in years
- Input expected annual return rate
- Choose compound frequency (more frequent = more growth)
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About Investment Calculator
Calculate investment returns, compound growth, and ROI with our powerful investment calculator. Whether you're planning to invest in stocks, bonds, mutual funds, real estate, or any asset class, this tool helps you project future value, understand compound interest effects, calculate required returns to meet goals, and compare investment scenarios. Input your initial investment, regular contributions, expected return rate, and time horizon to see how your money grows. Essential for investors planning portfolios, savers setting financial goals, financial advisors illustrating concepts to clients, and anyone wanting to understand investment potential. The calculator accounts for compound interest showing exponential growth over time, handles both lump-sum and regular contribution scenarios, adjusts for inflation to show real returns, and provides detailed breakdowns of principal vs. earnings. Make data-driven investment decisions with clear projections of potential outcomes.
Key Features
Compound Interest Calculation
See how compound interest multiplies your investment over time. Understand the power of returns earning returns for exponential growth.
Regular Contributions
Model monthly or annual contributions in addition to initial investment. See how dollar-cost averaging builds wealth over time.
Inflation Adjustment
View both nominal returns and real returns adjusted for inflation. Understand true purchasing power of future investment value.
ROI and Total Return
Calculate return on investment percentage, total earnings, and profit from investments. Compare performance across different scenarios.
Visual Growth Charts
Interactive charts show investment growth over time, principal vs. earnings breakdown, and milestone achievement for easy understanding.
Scenario Comparison
Compare different return rates, contribution amounts, and time periods. See how variables affect final investment value.
How to Use Investment Calculator
Enter Initial Investment
Enter your initial investment amount (starting principal). This is the lump sum you're investing now or plan to invest.
Set Regular Contributions
Input monthly or annual contribution amount if making regular investments. This models dollar-cost averaging and consistent savings.
Set Return Rate
Set expected annual return rate based on historical returns or projections. Use conservative estimates for realistic planning.
Enter Time Period
Enter the investment time period in years. Longer time horizons allow more compound growth to accumulate.
Adjust for Inflation
Optionally set inflation rate to see real returns adjusted for purchasing power. Understand the true value of future money.
View Projections
View detailed projections showing final value, total contributions, earnings, and ROI. See the breakdown of principal vs. growth.
Compare Scenarios
Adjust variables to model different scenarios and compare outcomes. See how changes in contributions, returns, or time affect results.
Frequently Asked Questions
What is compound interest and why does it matter?
Compound interest means earning returns on your previous returns, not just your original investment. Money grows exponentially, not linearly. $10,000 at 8% for 30 years becomes $100,627, not $34,000 (simple interest). Time and compounding are the most powerful wealth-building forces.
What return rate should I expect?
Historical S&P 500 averages about 10% annually (7% after inflation). Diversified portfolio with stocks and bonds: 6-8%. Conservative bonds/savings: 2-4%. Risky individual stocks or crypto: highly variable. Past performance doesn't guarantee future returns. Use conservative estimates for planning.
How much should I invest monthly?
Financial advisors often recommend saving 15-20% of gross income. Specific amount depends on your goals, timeline, and current financial situation. Start with what you can afford and increase gradually. Our calculator shows what monthly amount achieves specific goals.
Should I invest a lump sum or dollar-cost average?
Historically, lump-sum investing outperforms dollar-cost averaging about 2/3 of the time because markets trend upward. However, DCA reduces timing risk and emotional stress. If you have a lump sum, investing it usually wins. If earning monthly income, DCA is natural.
What about taxes on investment returns?
This calculator shows pre-tax returns. In taxable accounts, you'll pay capital gains tax (0%, 15%, or 20% depending on income) on profits. Tax-advantaged accounts (401k, IRA, Roth IRA) defer or eliminate taxes. Factor taxes into real-world calculations.
How important is the return rate percentage?
Very important! A 2% difference compounds dramatically over time. $10,000 at 6% for 30 years = $57,435. At 8% = $100,627. At 10% = $174,494. Focus on low-cost index funds to maximize returns by minimizing fees.
What if the market goes down?
Market downturns are normal and temporary historically. Stay invested, keep contributing (buy low!), and don't panic sell. Market timing is nearly impossible. Time IN the market beats timing the market. Our calculator assumes average returns over time.
Can I really trust these projections?
These are estimates based on assumptions. Markets fluctuate, returns vary, and future is uncertain. Use projections as planning tools, not guarantees. Model conservative scenarios and best/worst cases. Adjust plan as life changes and markets evolve.
Use Cases
- Long-Term Wealth Building: Plan for long-term financial goals like retirement, children's education, or major purchases. See how consistent investing and time create substantial wealth through compound growth.
- Portfolio Strategy Planning: Compare different investment allocations and return scenarios. Model aggressive growth vs. conservative strategies to find the right balance for your risk tolerance and goals.
- Education Savings (529 Plans): Calculate how much to save monthly to fund college education. Project 529 plan growth and determine if contributions will meet education cost goals.
- Real Estate Investment Analysis: Model property appreciation, rental income, and total return on real estate investments. Compare real estate returns to stock market alternatives.
- Investment Goal Achievement: Work backward from a goal amount to determine required monthly contributions or return rates. Understand exactly what's needed to reach specific financial targets.