Investment Calculator
Calculate your investment returns and ROI
Investment Details
Results
Growth Over Time
How to Use This Investment Calculator
Enter Your Initial Investment
Input the amount you're starting with. This could be a lump sum from savings, an inheritance, or proceeds from selling assets.
Set Monthly Contributions
Enter how much you plan to add each month. Regular contributions, even small amounts, can significantly grow your portfolio over time through dollar-cost averaging.
Choose Expected Annual Return
Historical stock market returns average about 7-10% annually after inflation. Be conservative with estimates for safer planning. Stocks: 7-10%, Bonds: 4-6%, Savings: 1-3%.
Select Investment Period
Choose how long you plan to invest. Longer periods benefit from compound growth. Most financial goals are 5-30 years for retirement, education, or major purchases.
Understanding Investment Terms
Future Value
The total value of your investment at the end of your chosen time period, including all contributions and accumulated earnings.
Return on Investment (ROI)
The percentage gain or loss on your investment relative to the amount you invested. Higher ROI means better investment performance.
Compound Interest
Interest earned on both your initial investment and previously accumulated interest. This "interest on interest" effect accelerates growth over time.
Dollar-Cost Averaging
Investing a fixed amount regularly regardless of price. This strategy reduces the impact of market volatility by spreading purchases over time.
Frequently Asked Questions
What is a good expected annual return?
Historically, the S&P 500 averages about 10% annually (7% after inflation). Conservative investors might expect 4-6%, while aggressive investors might target 10-12%. Always consider your risk tolerance.
How much should I invest monthly?
A common guideline is to invest 15-20% of your income. However, any amount is better than nothing. Start with what you can afford and increase contributions as your income grows.
Does this calculator account for inflation?
This calculator shows nominal returns. To account for inflation, subtract the expected inflation rate (typically 2-3%) from your expected return for a more accurate picture of purchasing power.
What types of investments should I consider?
Common options include stocks (highest potential return, more volatile), bonds (lower return, more stable), index funds (diversified, low fees), and ETFs. Diversification across asset classes is key to managing risk.