Project the future value of your investment portfolio. Enter your initial investment, monthly contributions, expected annual return, and investment period to see how your money can grow through the power of compounding.
Future Value—
Total Contributions—
Total Returns (Interest)—
Return on Investment—
This calculator provides estimates and is for informational purposes only. Actual investment returns will vary.
How It Works
This calculator projects the growth of an investment using compound interest. Your initial investment grows as: FV = PV × (1 + r)^n, where PV is the present value, r is the periodic rate, and n is the number of periods. Additional monthly contributions grow as a future value of an annuity: FV = PMT × ((1 + r)^n − 1) / r. The total future value is the sum of both components. Compound interest means you earn returns not only on your original investment but also on accumulated interest—this "interest on interest" effect accelerates growth significantly over longer time horizons.
Frequently Asked Questions
What annual return rate is realistic?
The S&P 500 has historically returned about 10% per year before inflation (roughly 7% after inflation). Bond returns average 4–6%. A balanced portfolio (60/40 stocks/bonds) might average 7–8%. Always consider that past performance doesn't guarantee future results.
How does compounding frequency affect results?
This calculator compounds monthly. More frequent compounding (daily vs. monthly vs. annually) produces slightly higher returns for the same nominal rate. The difference is usually small but grows with higher rates and longer timeframes.
Should I invest a lump sum or dollar-cost average?
Statistically, lump sum investing outperforms dollar-cost averaging about two-thirds of the time because markets trend upward. However, dollar-cost averaging (regular monthly contributions) reduces timing risk and is psychologically easier for most investors.