Investment Calculator
This investment calculator estimates future investment value using an initial amount, monthly contributions, expected annual return, and time horizon. It helps you model growth scenarios before making planning decisions.
Quick answer
The calculator compounds returns across the selected period.
What this tells you
- •The calculator compounds returns across the selected period.
- •Monthly contributions are converted to compounding-period contributions.
- •Results are projected estimates based on fixed assumptions, not guaranteed outcomes.
How to Use
- 1Enter your initial investment amount.
- 2Enter your monthly contribution amount.
- 3Set annual return rate and investment years.
- 4Choose compounding frequency and calculate.
How It Works
Formula
Periodic rate = annual return ÷ compounds per year
Future value is computed period-by-period:
FV(next) = FV(current) × (1 + periodic rate) + contribution per periodThe model applies compound growth at each period and adds regular contributions. This reflects a practical projection method for recurring investment plans.
Calculation note: values are processed in the order shown above, using the current input units.
Worked Examples
10-year growth example
Longer duration and consistent contributions typically produce a larger growth component through compounding.
Common mistakes
- Assuming projected return is guaranteed
- Using unrealistic annual return assumptions
- Ignoring fees, taxes, and inflation in planning
Limitations
This model assumes a constant annual return, fixed contribution timing per compounding period, and stable compounding frequency. It does not include taxes, account fees, inflation effects, sequence-of-returns risk, or changing market volatility.