Investment Calculator
Project your investment growth and see how your money can grow over time
Investment Details
Investment Summary
Growth Breakdown
Investment Growth Over Time
About Investment Growth
The power of compounding can significantly grow your investments over time. This calculator shows how your initial investment, combined with regular contributions and investment returns, could grow in the future.
Time Horizon
The longer your investment period, the more time your money has to compound and grow. Even small investments can grow significantly over long periods.
Rate of Return
Higher returns can dramatically increase your final value, but typically come with increased risk. The calculator assumes a constant rate of return.
Regular Contributions
Adding consistent contributions over time allows you to benefit from dollar-cost averaging and can significantly boost your investment's growth.
Compound Frequency
More frequent compounding (monthly vs. annually) leads to slightly higher returns over time as interest is calculated more often.
Important Notes
- This calculator provides estimates only and does not account for inflation, taxes, or fluctuating returns.
- Actual investment returns will vary over time and may differ significantly from steady returns shown here.
- The calculator assumes contributions are made consistently throughout the investment period.
- Consider consulting with a financial advisor for personalized investment advice.
Frequently Asked Questions
What is compound interest?
Compound interest is the process where interest is added to the principal sum, and from that point on, the added interest also earns interest. This concept allows investments to grow exponentially over time, creating a snowball effect.
How much should I invest each month?
The amount you should invest monthly depends on your financial goals, time horizon, and budget. Many financial advisors suggest aiming to invest 15-20% of your income, but even small, consistent contributions can grow significantly over time due to compounding.
Is an 8% annual return realistic?
An 8% average annual return is often used as a long-term historical average for stock market returns. However, actual returns can vary significantly year to year and depend on your investment strategy, asset allocation, and market conditions. More conservative investments typically offer lower returns with less risk.
What are the different compounding frequencies?
Compounding frequency refers to how often interest is calculated and added to your investment. Common frequencies include:
- Annual: Interest is calculated once per year
- Semi-annual: Interest is calculated twice per year
- Quarterly: Interest is calculated four times per year
- Monthly: Interest is calculated 12 times per year
- Daily: Interest is calculated 365 times per year
More frequent compounding generally results in slightly higher returns over long periods.