Investment Calculator
Calculate how much your investments will grow with compound interest.
Investment Plan
Investment Growth
Future Value
$113,669
Investment Growth Over Time
About This Calculator
The Investment Calculator helps you project how much your investments will grow over time with compound interest and regular contributions. Whether you're investing in stocks, bonds, mutual funds, or other assets, this tool shows the power of consistent investing and compound growth.
This calculator accounts for your initial investment, monthly contributions, and compound interest to show your projected investment balance. See how small regular contributions can grow significantly over time with the power of compound interest working for you.
Formula & Calculation Method
Investment Growth Formula:
Future Value of Initial = Initial × (1 + r)^n
Future Value of Contributions = Monthly × [(1 + r)^n - 1] / r
Total Future Value = FV of Initial + FV of Contributions
Where:
r = Monthly interest rate (Annual rate / 12)
n = Number of months (Years × 12)
Interest Earned = Future Value - Total Invested
The formula compounds interest monthly on both your initial investment and monthly contributions. This shows the true growth potential of regular investments with compound interest.
How to Use This Calculator
- Enter Initial Investment: Input your starting investment amount (can be $0).
- Enter Monthly Contribution: Input how much you plan to invest each month.
- Enter Expected Return: Input your expected annual return rate percentage.
- Enter Time Period: Input how many years you plan to invest.
- View Results: See your future investment value, total invested, and interest earned.
- Analyze: Review the growth chart to see investment increase over time.
Frequently Asked Questions
What is a realistic expected return rate?
Expected returns depend on your investment mix. Historical stock market returns average 7-10% annually over long periods. Conservative portfolios might expect 4-6%, while aggressive portfolios might target 8-12%. Past performance doesn't guarantee future results.
How often is interest compounded?
This calculator assumes monthly compounding, which is common for many investment accounts. More frequent compounding (daily) results in slightly higher returns, but the difference is usually minimal.
Can I change my monthly contribution amount?
The calculator uses a fixed monthly contribution for simplicity. In reality, you can adjust contributions, but this gives you a baseline projection. Try different contribution amounts to see the impact.
How accurate are these projections?
Projections assume constant returns and regular contributions. Actual results may vary significantly based on market conditions, investment performance, and your ability to maintain consistent contributions. Use as a planning tool, not a guarantee.
Related Calculators
Senior Financial Analyst
CFA with 15+ years in financial planning and investment management.