Investment Calculator
Project the growth of your investments over time with regular contributions. See both nominal and inflation-adjusted returns.
How Investment Growth Works
Investment growth depends on your initial capital, regular contributions, expected return rate, and time horizon. Compound interest means your returns earn more returns over time, creating exponential growth potential.
Frequently Asked Questions
How do I calculate investment returns?
Investment returns depend on your initial amount, regular contributions, expected return rate, and time period. The formula accounts for compound growth: your money earns returns, and those returns earn more returns over time.
What is a realistic rate of return?
Historically, the S&P 500 has returned about 10% annually before inflation (7% after inflation). Bond funds typically return 3-5%. A diversified portfolio might expect 6-8% long-term returns.
What is the difference between nominal and real returns?
Nominal returns are the stated percentage gains. Real returns adjust for inflation, showing your actual purchasing power increase. If your investment returns 8% and inflation is 3%, your real return is about 5%.
How important are regular contributions?
Regular contributions dramatically boost your final balance through dollar-cost averaging and compound growth. Even small monthly additions can result in significantly more wealth over decades compared to a one-time investment.
Disclaimer
This calculator is for informational purposes only and should not be considered financial advice. Consult with a qualified financial professional before making any financial decisions.