Investment Calculator
Calculate the future value of investments with regular contributions, compound growth, and inflation adjustment.
Input Parameters
Results
Power of Regular Investing
Regular monthly contributions combined with compound growth can dramatically increase your wealth over time. Starting early and increasing contributions, even slightly, has an outsized impact on final portfolio value.
What is the Investment Calculator?
The Investment Calculator is a versatile forecasting tool. It allows users to project the future value of stocks, bonds, or real estate portfolios by simulating consistent monthly deposits and compounding returns over long time horizons.
How It Works (Algorithm)
The tool relies on the Future Value of an Annuity formula. It calculates the exponential growth of the initial starting balance, and simultaneously calculates the compounding growth of every single monthly deposit you make along the way.
$$ FV = P(1+r)^n + PMT \left[ \frac{(1+r)^n - 1}{r} \right] $$
Calculates the growth of the principal and the ongoing deposits combined.
How to Use It
Enter your starting capital. Enter the amount you plan to invest every month. Estimate your expected annual return (the historical S&P 500 average is around 8-10%). The calculator will visualize your path to becoming a millionaire.