Investment Calculator
Calculate future investment value with regular contributions, compound growth, and detailed year-by-year projections
Future Investment Value
Investment Breakdown
Year-by-Year Growth Projection
| Year | Contributions | Growth | Balance |
|---|---|---|---|
| 1 | $6,000 | $1,055 | $17,055 |
| 2 | $6,000 | $1,641 | $24,695 |
| 3 | $6,000 | $2,275 | $32,970 |
| 4 | $6,000 | $2,961 | $41,932 |
| 5 | $6,000 | $3,705 | $51,637 |
| 6 | $6,000 | $4,511 | $62,148 |
| 7 | $6,000 | $5,383 | $73,531 |
| 8 | $6,000 | $6,328 | $85,859 |
| 9 | $6,000 | $7,351 | $99,210 |
| 10 | $6,000 | $8,459 | $113,669 |
| 11 | $6,000 | $9,659 | $129,329 |
| 12 | $6,000 | $10,959 | $146,288 |
| 13 | $6,000 | $12,367 | $164,655 |
| 14 | $6,000 | $13,891 | $184,546 |
| 15 | $6,000 | $15,542 | $206,088 |
| 16 | $6,000 | $17,330 | $229,419 |
| 17 | $6,000 | $19,267 | $254,685 |
| 18 | $6,000 | $21,364 | $282,049 |
| 19 | $6,000 | $23,635 | $311,684 |
| 20 | $6,000 | $26,095 | $343,778 |
About This Tool
An investment calculator helps you project the future value of your investments based on initial deposits, regular contributions, and expected returns. Understanding how your investments can grow over time through compound interest and consistent contributions is essential for reaching your financial goals, whether you're saving for retirement, a home, or your children's education.
The Power of Regular Contributions
Consistent monthly contributions can have a dramatic impact on your investment growth. Through dollar-cost averaging, regular investments help smooth out market volatility and build wealth steadily. For example, investing just $500/month at 8% annual returns for 20 years grows to over $294,000 - with only $120,000 contributed, the remaining $174,000 comes from compound growth. Doubling your contribution to $1,000/month would result in nearly $590,000, demonstrating how increasing contributions accelerates wealth building.
Understanding Investment Returns
Historical stock market returns average about 10% annually before inflation, though individual years vary widely. A diversified portfolio of stocks and bonds might average 7-9% over long periods. Conservative portfolios with more bonds may return 4-6%, while aggressive stock portfolios might target 9-11%. Remember that these are averages - actual returns fluctuate year to year. For planning purposes, using slightly conservative estimates (6-8%) helps ensure you won't fall short of your goals.
Tax-Advantaged Investment Accounts
Where you invest matters as much as how much. Tax-advantaged accounts like 401(k)s, IRAs, and Roth IRAs offer significant benefits. Traditional 401(k)/IRA contributions are tax-deductible now, with taxes paid upon withdrawal in retirement (when you may be in a lower bracket). Roth accounts use after-tax dollars but grow tax-free forever - no taxes on withdrawals in retirement. Employer 401(k) matches are free money, so always contribute enough to get the full match before investing elsewhere.
Starting Early Makes All the Difference
Time is your most powerful investment tool. Starting at age 25 versus 35 gives your money an extra decade to compound. If you invest $500/month at 8% from age 25 to 65 (40 years), you'll have $1.75 million. Start at 35 with the same contribution and you'll have $745,000 - less than half! Starting early also lets you weather market downturns better, as you have time to recover. Even if you can only invest small amounts initially, start now and increase contributions as your income grows. The best time to start investing was yesterday; the second best time is today.