Use this free investment calculator to estimate how your money could grow over time with an initial investment, regular monthly contributions and an expected annual return.
This investment growth calculator also lets you include estimated investment fees and inflation so you can compare different long-term investment scenarios and understand how fees, compound growth and purchasing power may affect your results.
Investment Growth Calculator
Investment Growth by Year
The table below shows how the estimated investment value could develop over time based on the assumptions entered into the investment calculator.
Each year's estimate includes your accumulated contributions and estimated investment growth after fees. These figures are mathematical projections based on the assumptions entered and are not guaranteed investment returns.
| Year | Contributed | Estimated value | Investment growth |
|---|
How Does an Investment Calculator Work?
An investment calculator estimates how an investment could grow over time based on an initial amount, regular contributions and an assumed annual rate of return.
Enter your starting investment, monthly contribution, expected annual return and investment period. The calculator compounds the assumed return monthly and adds your regular contributions throughout the investment period.
You can also enter estimated annual investment fees and inflation. This makes it possible to compare the potential effect of investment costs and changes in purchasing power on long-term investment projections.
The results are mathematical projections based on the assumptions you enter. They should not be interpreted as a prediction of actual market performance.
Investment Calculator With Monthly Contributions
Regular monthly contributions can have a significant effect on long-term investment growth. Instead of investing only an initial amount, you can use this calculator to model an investment strategy that adds money every month.
Each monthly contribution becomes part of the invested balance and can potentially generate future returns. The longer the investment period, the more opportunities those contributions have to participate in compound growth.
This is useful when estimating scenarios such as investing a fixed amount every month into a diversified portfolio, retirement account, index fund or other long-term investment.
Investment Return Calculator
An investment return calculator can help estimate how different annual return assumptions may affect the future value of an investment.
The expected annual return entered into this calculator is an assumption used for mathematical projections. Actual investment returns can vary from year to year and may be positive or negative.
Comparing several return assumptions can help illustrate how the investment period, contributions and compound growth interact over time.
How to Calculate Investment Growth
Investment growth depends on several factors, including your starting investment, regular contributions, expected return, investment fees and the amount of time your money remains invested.
Compound growth means that investment returns can generate additional returns over time. Regular contributions can also increase the amount of money invested and potentially benefit from future growth.
Because the effect of compounding increases over longer periods, changing the investment period can have a significant effect on the estimated final value.
Investment Calculator With Fees and Inflation
Investment fees can reduce the amount of money that remains invested and available to generate future returns. Even relatively small annual fees can have an effect when an investment is held for many years.
For example, if an investment has an expected annual return of 7% and annual investment fees of 0.2%, the estimated effective annual return after fees is approximately 6.79% under the assumptions used by this calculator.
Actual investment costs vary depending on the investment product and provider. They may include fund expenses, management fees, platform fees, trading costs, taxes or other charges that are not necessarily included in this calculator.
Why Inflation Matters for Investments
Inflation reduces the purchasing power of money over time. As a result, an investment balance that looks large in the future may have less purchasing power than the same amount of money today.
This calculator provides an estimated inflation-adjusted value to illustrate how inflation could affect the future purchasing power of your investment.
The inflation assumption is not a prediction. Actual inflation can vary over time and can be higher or lower than the percentage entered into the calculator.
Example Investment Scenario
Suppose you invest $5,000 initially and contribute $200 every month. If you assume a 7% annual return, 0.2% annual investment fees and 2% annual inflation over 20 years, the calculator estimates a final investment value of approximately $117,666.
You would contribute a total of $53,000 during the 20-year period. Under these assumptions, the estimated investment growth would be approximately $64,666.
The estimated inflation-adjusted value would be approximately $79,186 in today's purchasing power based on the 2% annual inflation assumption.
This example is purely hypothetical. Investment returns can vary significantly from year to year, and actual results may be higher or lower than the estimate.
Frequently Asked Questions
What is an investment calculator?
An investment calculator is a financial planning tool that estimates how an investment could grow over time based on inputs such as an initial investment, regular contributions, expected return and investment period.
What return should I use in an investment calculator?
There is no single return that applies to every investment. The appropriate assumption depends on the type of investment, investment period and level of risk involved. It can be useful to compare several different return assumptions rather than relying on a single projection.
Does this investment calculator guarantee returns?
No. The calculator only produces a mathematical estimate based on the assumptions you enter. Actual investment returns are uncertain and can be significantly different from the estimated results.
Does the calculator include investment fees?
Yes. You can enter an estimated annual investment fee. The calculator estimates the effect of these fees on the investment balance over time and also shows the estimated total fees paid.
Does the investment calculator account for inflation?
Yes. You can enter an estimated annual inflation rate, and the calculator provides an estimated inflation-adjusted value to illustrate the potential effect on future purchasing power.
Can I use this calculator for stocks or ETFs?
Yes. You can use it for educational projections involving stocks, ETFs or diversified investment portfolios. However, actual returns, volatility, fees and taxes can differ substantially from the assumptions entered.
What is the difference between investment growth and money contributed?
Money contributed is the amount you personally put into the investment, including your initial investment and regular contributions. Investment growth is the estimated increase in value resulting from the assumed investment returns after fees.
Why is the value after inflation lower than the final value?
The final value is expressed in future dollars, while the inflation-adjusted value estimates what that future amount could represent in today's purchasing power. Higher inflation generally means lower purchasing power in the future.
How does a monthly contribution affect investment growth?
Regular monthly contributions increase the amount of money invested over time. Each contribution can potentially participate in future investment growth, so increasing the monthly contribution can increase the estimated final portfolio value.
How long should I keep an investment invested?
The appropriate investment period depends on your financial goals, circumstances and the type of investment. This calculator allows you to compare different time periods and see how changing the investment horizon affects the mathematical projection.
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Disclaimer: This calculator is provided for educational and informational purposes only. It does not constitute financial, investment, tax or legal advice. Investment returns are uncertain, and actual results may differ from these estimates.