Investment Growth Calculator

Plan your long-term wealth growth through regular contributions, variable returns, and the compounding effect.

Investment Design

Starting Capital

Annual Return Rate (%)

Investment Period (Years)

Compound Interval

Monthly Addition

Wealth Projection

Future Balance$96,591

Return on Capital$31,591

Total Invested$65,000

Wealth Accumulation Projection

Total Wealth

Total Invested

Projections are based on constant periodic contributions and fixed compounding. Actual investment returns in equity markets are non-linear.

Overview

Investment growth is driven by the triumvirate of capital, rate of return, and time. While the rate of return is often subject to market volatility, your initial capital and consistent contributions are the levers you control. This calculator helps you see how small, regular additions to your principal can lead to significant wealth over decades due to the exponential nature of compound growth.

💡

Pro Tips

What is CAGR?: Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer than one year.
How does inflation impact returns?: Nominal returns don't account for purchasing power. If your portfolio grows at 7% but inflation is 3%, your 'real' rate of return is roughly 4%.
Why use monthly compounding?: Most liquid investments like savings accounts or REIT dividends compound monthly, which slightly increases the effective annual yield compared to annual compounding.

Fun Facts

"The 'Rule of 72' helps you estimate doubling time: 72 / Interest Rate = Years to double."
"A 1% difference in fees or returns can result in hundreds of thousands of dollars in lost wealth over a 30-year horizon."
"The US stock market has returned an inflation-adjusted average of about 6.5% annually over the last century."

Formula: A = P(1 + r/n)^nt + [ PMT * ((1 + r/n)^nt - 1) / (r/n) ]

Used with this

Similar tools that might be useful

Affocalculator

Afncalculator

Arvcalculator