Investment Calculator
Project your wealth growth. See the powerful effect of Compound Interest and regular contributions.
Investment Plan
Projected Balance
after 10 years
Breakdown
This tool helps you visualize the exponential growth of your portfolio. Whether you're saving for a house, retirement, or financial freedom, the math is the same: Money × Time × Rate of Return.
"Compound interest is the eighth wonder of the world. He who understands it, earns it... he who doesn't... pays it." — attributed to Albert Einstein.
Time is Your Best Asset
The biggest factor in investing isn't picking the perfect stock—it's starting early.
Investor A (Starts at 25)
Invests $500/mo for 10 years, then stops.
Value at Age 65 (7% return)
Investor B (Starts at 35)
Invests $500/mo for 30 years (until 65).
Value at Age 65 (7% return)
Investor A invested 3X less money ($60k vs $180k) but ended up with more wealth purely because they started 10 years earlier.
Smart Investing Rules
Diversification & Fees
Don't look for a needle in the haystack. Buy the haystack. Low-cost Broad Market Index Funds (like total US Stock Market) guarantee you get the market return minus tiny fees. However, a million dollars in the future won't buy what it does today. Use our Inflation Calculator to see the real value of your investment.
Retirement Goals
Investing is just a vehicle to get to a destination. Use our Retirement planner to work backwards: realize how much you need per month to hit your "Freedom Number."
Calculate Retirement NumberThe Math: Compound Growth with Contributions
We use the standard Future Value of an Annuity formula to account for both your starting principal and your regular monthly contributions growing over time.
- P: Starting Amount
- PMT: Monthly Contribution
- r: Monthly Interest Rate (Annual Rate / 12)
- t: Total Number of Months
The "Coffee" Factor
Small daily habits compounded over 30 years at 8% return.
| Daily Habit | Monthly Cost | 10 Years | 30 Years |
|---|---|---|---|
| Streaming Services | $50 | $9,000 | $75,000 |
| Daily Coffee | $150 | $27,000 | $225,000 |
| New Car Payment | $600 | $109,000 | $900,000 |
Shows potential value if that monthly spend was instead invested in an S&P 500 index fund (avg 8% return).
Related Tools
Lump Sum vs. Dollar Cost Averaging (DCA)?
Mathematically, Lump Sum investing beats DCA about 66% of the time because markets tend to go up. However, DCA (investing smaller amounts regularly) is often psychologically easier because you don't fear 'buying at the top.'
What is a 'Good' rate of return?
Historically, the S&P 500 has returned about 10% per year (nominal) or 7% per year (real, adjusted for inflation) over long periods. Safe assets like bonds often return 3-5%.
How do fees impact my returns?
Fees are wealth destroyers. A 1% fee sounds small, but over 30 years, it can eat up to 25% of your total potential portfolio value. Always look for low 'Expense Ratios' (under 0.10%).
Can I lose money investing?
Yes. In the short term, markets can drop 20-50%. However, historically, the diversified US stock market has never lost money over any 20-year rolling period. Time is your safety net.
What is Asset Allocation?
It's the mix of stocks, bonds, and cash in your portfolio. A common rule of thumb is '110 minus your age' = the percentage of stocks you should own (e.g., Age 30 -> 80% Stocks).
Investing Terms
CAGR
Compound Annual Growth Rate. The smooth annual rate of return required for an investment to grow from its beginning balance to its ending balance.
Expense Ratio
The annual fee charged by funds. 0.03% is great; 1.00% is terrible. Always check this.
Dividend Yield
Cash paid out by a company to shareholders, usually expressed as a percentage of the stock price.
Volatility
How much price swings up or down using variance. High volatility equals higher risk (but often higher potential reward).
About This Calculator
This Investment Calculator uses constant growth rate assumptions. In reality, markets are volatile (returns are never a straight line). This tool does not account for capital gains taxes or inflation unless specified.