💹 Investment Calculator
Investing rewards two habits: starting with something, and adding to it regularly. This calculator combines both — a lump sum that compounds from day one, plus yearly contributions that each start growing the moment they are added.
The annual return you enter should be your realistic long-term expectation after fees. Markets are volatile year to year; this projection shows the smooth average path.
How to use this calculator
Enter your starting investment, yearly contributions, expected return and time horizon to see the projected future value and how much came from growth.
- Type your Initial investment as a lump sum.
- Enter the Yearly contribution you plan to add.
- Set the Expected annual return as a percentage.
- Choose the Years invested, press Calculate, then extend the years to watch compounding accelerate.
Frequently asked questions
What does this calculator show?
It projects the future value of your investment, the total amount you put in, and the interest or growth earned on top. That split shows how much of the final sum came from compounding rather than from your pocket.
What is the maths behind it?
The initial lump sum compounds for the full period, and the yearly contributions grow through the future-value-of-an-annuity formula. Both parts use the expected annual return you enter.
Walk me through an example.
Investing $10,000 now plus $3,000 a year at an 8% return for 20 years projects a future value of about $183,896. You would have invested $70,000, so roughly $113,896 is growth.
How should I pick the return?
Enter a realistic long-term expectation after fees, not the best year you have seen. Markets are volatile from year to year; this tool draws the smooth average path, which is useful for planning but never guaranteed.