Example 1
$5,000 plus $200 monthly
At 7% for 20 years, the balance reaches about $113,000 from $53,000 invested.
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Investment Calculator
See how your money grows over time with compound interest. Calculate future value, ROI, and total returns.
Investment details
Adjust the values to project how your investment grows over time.
$
$
%
Future value of investment
$300,850.72
Total amount invested
$130,000.00
Total interest earned
$170,850.72
Return on investment (ROI)
131.42%
Initial: $10,000.00Monthly: $500.00Period: 20 yearsRate: 7%
Year-by-year growth
Annual contributions, interest earned, and total balance for each year.
| Year | Annual contribution | Interest earned | Total balance |
|---|---|---|---|
| 1 | $6,000.00 | $919.19 | $16,919.19 |
| 2 | $6,000.00 | $1,419.38 | $24,338.58 |
| 3 | $6,000.00 | $1,955.73 | $32,294.31 |
| 4 | $6,000.00 | $2,530.85 | $40,825.16 |
| 5 | $6,000.00 | $3,147.55 | $49,972.70 |
| 6 | $6,000.00 | $3,808.82 | $59,781.53 |
| 7 | $6,000.00 | $4,517.90 | $70,299.43 |
| 8 | $6,000.00 | $5,278.24 | $81,577.68 |
| 9 | $6,000.00 | $6,093.55 | $93,671.22 |
| 10 | $6,000.00 | $6,967.79 | $106,639.02 |
| 11 | $6,000.00 | $7,905.24 | $120,544.25 |
| 12 | $6,000.00 | $8,910.45 | $135,454.70 |
| 13 | $6,000.00 | $9,988.32 | $151,443.02 |
| 14 | $6,000.00 | $11,144.12 | $168,587.14 |
| 15 | $6,000.00 | $12,383.47 | $186,970.62 |
| 16 | $6,000.00 | $13,712.41 | $206,683.03 |
| 17 | $6,000.00 | $15,137.43 | $227,820.45 |
| 18 | $6,000.00 | $16,665.45 | $250,485.91 |
| 19 | $6,000.00 | $18,303.94 | $274,789.85 |
| 20 | $6,000.00 | $20,060.87 | $300,850.72 |
Calculator guide
How It Works
The calculator grows your initial investment and monthly contributions at your chosen annual return, applying interest at the compounding frequency you select. Each period, earnings are added to the balance, so future earnings are calculated on both your deposits and past growth. It repeats this for every year in the investment period and records the balance at each year end.
Initial investment is the lump sum you start with. Monthly contribution is what you add regularly, and it often drives most of the long-term result. Annual rate is your expected average return; real markets vary, so test cautious and optimistic rates. Investment period is how long money stays invested, and compounding frequency is how often growth is credited. Seeing these together helps you weigh investing against paying down debt: if your loan rate is higher than your realistic expected return, extra loan payments may be the better use of spare cash.
For a deeper explanation, read Understanding Compound Interest: A Beginner's Guide.
What the Numbers Mean
- Future value
- Projected ending balance. A high value reflects time, contributions, and return working together.
- Total invested
- Money you personally put in. If it is close to future value, growth is modest.
- Interest earned
- Growth from compounding. Higher means time is doing more of the work.
- ROI
- Earnings as a percentage of contributions. A low ROI may mean a short horizon or conservative rate.
- Growth table
- Year-by-year balances show compounding accelerating over time.
Common Scenarios
Example 2
Ten more years
Extending to 30 years lifts it to roughly $245,000.
Example 3
Lower return
At 5% for 20 years, the same plan ends near $91,000.
Frequently Asked Questions
What rate of return should I assume for long-term investing?
Historical stock market averages run around 7-10% annually before inflation, though actual returns vary year to year. Using a conservative estimate within that range gives a more realistic projection.
How much does risk tolerance affect expected returns?
Higher-risk investments like stocks typically offer higher potential returns alongside more volatility, while lower-risk options like bonds offer steadier but smaller returns. The calculator lets different rate assumptions reflect that risk preference.
Does this calculator account for taxes on investment gains?
The calculator projects growth based on principal, contributions, and rate of return, and tax treatment depends on the account type (taxable, 401k, or IRA) and should be factored in separately.
How much difference does starting 10 years earlier make?
Starting a decade earlier often results in a significantly larger balance at retirement due to compounding, even with smaller monthly contributions. The calculator illustrates that gap when comparing different start dates.
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