Investment Calculator – Project Your Investment Growth
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What Is an Investment Calculator?
An investment calculator projects how your money could grow over time, combining a lump-sum initial investment with optional monthly additions, compounded at an expected annual rate of return.
Formula Used
Future Value = P(1 + r/12)^(12t) + PMT × [((1 + r/12)^(12t) − 1) / (r/12)]
Where P is the initial investment, r is the annual return rate, t is the number of years, and PMT is the monthly contribution amount.
How to Use This Calculator
Enter your initial investment amount, any monthly contributions you plan to add, your investment time horizon in years, and the annual return you expect. Click "Calculate Growth" to see your projected future value.
Understanding Investment Risk and Return
Higher expected returns generally come with higher risk and volatility — stocks historically outperform bonds and cash over long periods but with more year-to-year fluctuation. This calculator assumes a smooth, constant rate of return, which real investments rarely follow exactly.
Frequently Asked Questions
How is this different from the Compound Interest Calculator?
They use similar math, but this calculator is framed specifically around investment planning — projecting growth from an initial lump sum plus ongoing contributions toward a goal.
What return rate should I use for stocks vs. bonds?
Historically, stock market index funds have averaged around 7-10% annually before inflation, while bonds have typically returned less, often in the 3-5% range.
Does this calculator account for taxes or fees?
No, this is a gross projection. Investment fees, taxes on gains, and account type (taxable vs. tax-advantaged) will all affect your actual net returns.
Is it better to invest a lump sum or invest monthly?
Both work — investing a lump sum immediately typically has a statistical edge in rising markets, while monthly investing (dollar-cost averaging) can reduce the impact of market timing risk.