Investment Calculator

Calculate how your investments can grow over time. Model different scenarios with varying contribution amounts, return rates, and time horizons to plan for your financial goals.

Investment Projection

Future Value

$343,778

Total Interest

$213,778

164% gain

Total Contributions$130,000
Inflation-Adjusted Value$190,342
Effective Annual Return19.3%

Value Breakdown

Initial$10,000
Contributions$120,000
Interest Earned$213,778

Investment Goal

Initial Investment

0100,000

Monthly Contributions

05,000

Annual contribution: $6,000

Growth Parameters

8%
1%15%
20 years
1 years50 years
3%
0%10%

Portfolio Growth Over Time

Yearly Breakdown

YearBalanceContributionsInterestInflation Adjusted
1$17,055$16,000$1,055$16,558
3$32,970$28,000$4,970$30,172
5$51,637$40,000$11,637$44,542
7$73,531$52,000$21,531$59,787
9$99,210$64,000$35,210$76,036
11$129,329$76,000$53,329$93,430
13$164,655$88,000$76,655$112,122
15$206,088$100,000$106,088$132,280
17$254,685$112,000$142,685$154,089
19$311,684$124,000$187,684$177,749
20$343,778$130,000$213,778$190,342

Investment Strategy Tips

Start Early

Time is your greatest asset. Starting 10 years earlier can double your ending balance due to compound growth.

Stay Consistent

Regular monthly contributions build wealth steadily. Even small amounts add up significantly over time.

Diversify

Spread investments across asset classes to reduce risk while maintaining growth potential.

Keep Costs Low

High fees compound too - against you. A 1% fee can cost hundreds of thousands over a lifetime.

Quick Answer

An investment calculator projects how your investments grow over time based on initial investment, regular contributions, expected return rate, and time horizon. At practicalwebtools.com, enter your details to see future value projections. Historical S&P 500 returns average 10% annually, but actual returns vary by investment type and market conditions.

Key Facts

  • S&P 500 historical average return: 10% annually (before inflation)
  • Bond average returns: 4-6% annually
  • Inflation-adjusted stock returns: approximately 7% historically
  • Dollar-cost averaging reduces timing risk
  • $500/month at 7% for 30 years = $567,000+
  • Fees of 1% can reduce final balance by 25%+ over 30 years
  • Diversification reduces risk without necessarily reducing returns

Frequently Asked Questions

An investment calculator helps you project how your money can grow over time based on initial investment, regular contributions, expected return rate, and time horizon. It uses compound growth formulas to estimate future portfolio value, helping you plan for financial goals.
Historically, the S&P 500 has averaged about 10% annually before inflation (7% after). However, returns vary by investment type: stocks (8-12%), bonds (4-6%), real estate (8-12%), savings accounts (1-4%). Conservative estimates use 6-7%, aggressive use 8-10%.
Inflation reduces the purchasing power of your money over time. At 3% inflation, $100,000 in 20 years buys what $55,000 does today. Real returns = nominal returns minus inflation. A 7% return with 3% inflation gives 4% real return.
Statistically, lump sum investing outperforms dollar-cost averaging about 2/3 of the time because markets tend to rise. However, DCA reduces risk of investing at a market peak and provides psychological comfort. For most people, regular monthly investing through DCA is practical and effective.
A common guideline is to invest 10-20% of your gross income. At minimum, contribute enough to get your employer 401k match (typically 3-6%). The 50/30/20 rule suggests 20% for savings/investments. Start with what you can afford and increase over time.
Compound growth means earning returns on your returns. $10,000 growing at 8% becomes $21,589 in 10 years and $46,610 in 20 years - more than doubling in the second decade due to compounding. Time is the most important factor in wealth building.