Investment Calculator
Project future growth with compound interest. Visualize your portfolio value.
Wealth isn't just about what you earn—it's about what you grow. Use our **Investment Calculator** to see how consistency and compound interest can turn small monthly contributions into a massive future portfolio.
Investment Plan
Projected Balance
after 10 years
Breakdown
What is Investment Calculator?
Understanding Investment Growth
An **Investment Calculator** projects the future value of your money by applying two powerful forces: **Regular Contributions** and **Compound Interest**. Unlike a simple savings account, investing allows your interest to earn *more* interest, creating an exponential growth curve (the "hockey stick" effect).
Who Should Use This?
- Beginners: To see why starting with just $50/month is better than waiting.
- Parents: To plan for a college fund using a 529 plan or brokerage account.
- Home Buyers: To estimate how long it will take to grow a down payment in the market vs a savings account.
Why This Tool is Useful
It separates emotion from math. Markets go up and down, but over long periods (10+ years), the trend has historically been positive. This tool helps you focus on the long-term goal rather than daily noise.
When to Use It
Use this anytime you are setting a new financial goal, whether it's buying a house in 5 years or retiring in 30.
How to Use This Calculator
Input your plan details:
- Starting Amount: The lump sum you have ready to invest today.
- Years to Grow: How long you will let the money sit. Time is your best friend in investing.
- Return Rate (%): The annual percentage growth.
- Safe: 4% (Bonds/HYSA)
- Standard: 7-8% (Diversified Stock Portfolio)
- Aggressive: 10%+ (Growth Stocks/Crypto - Higher Risk)
- Monthly Contribution: The amount you add every single month. Consistency beats timing!
The Rule of 72
Want a quick mental math trick? Divide 72 by your interest rate to see how many years it takes to **double your money**.
10% Return → 72 / 10 = 7.2 Years to Double
Formula & Calculation
The calculator uses the **Future Value of a Series** formula combined with compound interest on the principal.
Where:
- A = Final Investment Value
- P = Initial Principal
- C = Monthly Contribution
- r = Monthly Interest Rate (Annual Rate / 12)
- t = Total Months (Years × 12)
Example Calculation
Example 1: The Coffee Habit
Scenario: Instead of spending $5/day on coffee, you invest $150/month for 30 years at 8%.
Final Value = $223,500
Result: Your coffee money turned into almost a quarter-million dollars! That is the power of small, consistent actions.
Example 2: The Short-Term Goal
Scenario: Saving for a house in 5 years. You save $1,000/month in a safe HYSA at 4%.
Interest Earned = $6,500
Result: You end up with $66,500. While 4% isn't exciting, it's safe, and the short timeframe means your contributions matter more than the interest.
Explanation of Results
- Projected Balance: The estimated total value of your account before taxes or inflation.
- ROI (Return on Investment): The percentage of gain relative to what you put in. A 200% ROI means you tripled your money.
- Exponential Curve: On the chart, look for the curve to bend upward. That's when your money starts making more money than you do!
Reference Tables
Impact of Rate of Return (Over 20 Years)
Investing $500/month starting with $10,000.
| Return Rate | Total Value | Profit |
|---|---|---|
| 2% (Bank Acct) | $149,000 | +$19k |
| 5% (Conservative) | $208,000 | +$78k |
| 8% (Market Avg) | $294,000 | +$164k |
| 10% (Aggressive) | $379,000 | +$249k |
Why use this calculator?
- Realistic Expectations: Understand that wealth building is a marathon, not a sprint.
- Scenario Planning: See how increasing your contribution by just $100/mo impacts the final number.
- Inflation Check: Remember to account for inflation. A 7% return might really be 4% in purchasing power terms.
Frequently Asked Questions
Frequently Asked Questions
What is Dollar Cost Averaging (DCA)?
DCA is the strategy of investing the same amount of money (e.g., $500) every month, regardless of whether the market is up or down. This removes the stress of "timing the market" and often leads to better long-term results by buying more shares when prices are low.
ETFs vs Mutual Funds?
ETFs (Exchange Traded Funds) trade like stocks throughout the day and largely have lower fees. Mutual Funds trade once at the end of the day. For most passive investors, low-cost Index ETFs (like VOO or SPY) are a popular choice.
Capital Gains Tax
When you sell an investment for a profit, you owe taxes. If you held it for >1 year, you pay Long-Term Capital Gains (usually 15%), which is lower than regular income tax. If you sell in <1 year, you pay higher Short-Term rates.
Risk vs Reward
Higher potential returns always come with higher risk. Stocks are volatile (can drop 20%+ in a year) but grow 8-10% long term. Bonds are stable but only grow 3-5%. A good portfolio balances both based on your age.
Key Terms & Definitions
Disclaimer: This calculator provides hypothetical projections. Past market performance does not guarantee future results. Invest at your own risk.
Last Updated: January 2026