Calculate compound interest, investment growth, and future value of your investments. Plan your financial future.
An investment calculator helps you understand how your money can grow over time through the power of compound interest. It takes into account your initial investment, regular contributions, expected return rate, and time horizon to project your investment growth.
For a $10,000 initial investment with $200 monthly contributions, 7% annual return over 20 years:
Your investment would grow to $86,542.84
You would contribute $58,000.00 in total
You would earn $28,542.84 in interest
Several factors affect your investment growth:
• Start early: Time is the most powerful factor in compound growth
• Contribute regularly: Consistent investments build wealth over time
• Diversify: Spread investments across different asset classes
• Reinvest dividends: Allow compounding to work fully
• Consider inflation: Focus on real returns after inflation
Understanding these factors can help you make informed investment decisions and build significant wealth over time through the power of compounding.
The future value of an investment is calculated using:
Where:
FV = Future value
P = Principal investment amount
PMT = Regular contribution amount
r = Annual interest rate (decimal)
n = Number of compounding periods per year
t = Number of years
Estimate how long it takes to double your investment:
Years to double = 72 / Annual return rate
Example: At 7% return, money doubles in about 10.3 years
• S&P 500: ~10% annually (nominal)
• Bonds: ~5-6% annually
• Real Estate: ~7-9% annually
• Savings Accounts: ~1-3% annually
Starting early makes a significant difference:
• At age 25: $300/month at 7% = $1.2M by age 65
• At age 35: $300/month at 7% = $567K by age 65
• At age 45: $300/month at 7% = $244K by age 65