Investment Calculator
Project your investment growth with regular contributions. See how starting early and contributing consistently builds wealth over time.
About this Calculator
Project your investment growth with regular contributions. See how starting early and contributing consistently builds wealth over time.
Formula & Calculations
Formula
FV = P(1+r)^n + C[((1+r)^n - 1)/r]Where:
- FV=Future value of the investment
- P=Starting principal amount
- C=Monthly contribution amount
- r=Monthly rate of return (annual rate / 12)
- n=Total number of months (years × 12)
Assumptions
- Assumes a constant annual rate of return for the entire investment period.
- Assumes contributions are made at the end of each month.
- Does not account for taxes, fees, or inflation.
- Past performance does not guarantee future returns.
Calculation Examples
Example 1
With consistent $500 monthly investments at 7% average return, your money more than doubles your total contributions over 20 years.
Example 2
Starting from scratch with $1,000 monthly investments over 30 years at 6% yields over $1 million, with nearly two-thirds from investment gains.
Example 3
A head start of $50,000 combined with consistent investing over 25 years at 8% produces significant wealth accumulation.
Frequently Asked Questions
How much should I invest each month?
Financial advisors often recommend saving 15-20% of your gross income for retirement and long-term goals. If that's not possible, start with whatever you can afford and increase contributions over time as your income grows.
What is dollar-cost averaging?
Dollar-cost averaging is investing a fixed amount regularly regardless of market conditions. This strategy means you buy more shares when prices are low and fewer when prices are high, potentially reducing your average cost per share over time.