Investment Calculator
Calculate your investment returns and see how your money can grow over time.
Calculate Investment Returns
Historical stock market average: ~7-10% annually
About Investment Calculations
Investment calculators help you understand how your money can grow over time through compound interest and regular contributions. This tool uses the future value formula for investments.
Investment Formula
FV = PV × (1 + r)^n + PMT × [((1 + r)^n - 1) / r]
Where:
FV = Future Value
PV = Present Value (initial investment)
PMT = Periodic Payment (monthly contribution)
r = Rate per period
n = Number of periods
Where:
FV = Future Value
PV = Present Value (initial investment)
PMT = Periodic Payment (monthly contribution)
r = Rate per period
n = Number of periods
Investment Types
- Stocks: Higher risk, higher potential return (7-10% avg)
- Bonds: Lower risk, moderate return (3-5% avg)
- Index Funds: Diversified, market average returns
- Real Estate: Tangible asset, rental income
- Savings Accounts: Very low risk, low return (1-2%)
Power of Compound Interest
- Earnings generate their own earnings over time
- Time is the most powerful factor in investing
- Starting early makes a huge difference
- Regular contributions amplify growth
- The "Rule of 72": Years to double = 72 / return rate
Investment Strategies
- Dollar-Cost Averaging: Invest fixed amount regularly
- Diversification: Spread risk across assets
- Long-Term Holding: Minimize trading, taxes
- Rebalancing: Maintain target asset allocation
- Tax-Advantaged Accounts: 401(k), IRA, Roth IRA
Important Considerations
- Past performance doesn't guarantee future results
- This calculator doesn't account for inflation
- Actual returns vary year to year
- Consider fees, taxes, and inflation in real planning
- Consult financial advisor for personalized advice