Investment Calculator
Calculate returns on your investment with regular contributions
This calculator estimates the future value of your investment based on initial amount, regular contributions, time period, and expected rate of return.
About this Tool
The Investment Calculator is a comprehensive financial tool that projects the future value of your investments by considering your initial investment amount, regular monthly contributions, investment timeframe, and expected annual return rate. Using the power of compound interest - where your earnings generate their own earnings - this calculator demonstrates how consistent investing over time can build substantial wealth. Whether you're saving for retirement, a home down payment, your children's education, or any long-term financial goal, this calculator helps you visualize your investment growth trajectory and make informed decisions about your savings strategy.
Common Use Cases
Long-Term Wealth Building
Plan systematic wealth accumulation by visualizing how regular monthly investments grow over decades through compound returns, helping you achieve financial independence.
Education Savings Planning
Calculate how much to invest monthly in a 529 plan or other education savings account to fully fund college expenses by the time your child reaches college age.
Down Payment Savings
Determine the monthly investment needed to save for a house down payment within your target timeframe, helping you set realistic homeownership goals.
Early Retirement Goal Setting
Project how aggressive saving and investing can accelerate your path to early retirement, showing you what's possible with different savings rates and return scenarios.
Investment Strategy Testing
Compare different investment approaches - aggressive growth versus conservative income - by adjusting expected return rates to see how strategy choices impact outcomes.
Legacy & Estate Planning
Estimate the estate value you could leave to heirs or charities by projecting long-term investment growth under various contribution and return scenarios.
Pro Tips
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Harness Compound Interest Early
The earlier you start investing, the more time compound interest has to work its magic. Even small amounts invested in your 20s can outgrow much larger amounts invested in your 40s due to decades of compounding returns.
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Automate Your Investments
Set up automatic monthly transfers to your investment accounts to ensure consistency. Dollar-cost averaging through regular contributions helps smooth out market volatility and removes emotion from investing decisions.
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Use Realistic Return Expectations
The S&P 500 has historically returned about 10% annually, but individual results vary. Use 7-8% for diversified stock portfolios, 5-6% for balanced portfolios, and 3-4% for conservative bond-heavy portfolios for realistic planning.
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Reinvest All Dividends
Always reinvest dividends and interest payments rather than taking them as cash. Reinvested dividends can account for up to 40% of total long-term returns through the power of compounding.
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Increase Contributions with Income
Whenever you receive a raise, bonus, or windfall, increase your monthly investment amount. This allows you to accelerate wealth building without impacting your current lifestyle or spending habits.
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Consider Tax-Advantaged Accounts
Maximize contributions to 401(k), IRA, and HSA accounts first. These offer tax deductions or tax-free growth, effectively boosting your returns by 20-30% compared to taxable accounts.