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Investment Calculator
Project your investment growth with market returns, inflation adjustment, and year-by-year projections.
Currency
Risk Profile
Investment Details
Amount added each month
1 years50 years
Historical S&P 500: ~10% nominal, ~7% real
Long-term US average: ~2.5%
Understanding Investment Growth
Key Concepts
- Compound Growth: Returns earned on both principal and accumulated returns
- Nominal vs Real: Nominal is the face value; real accounts for inflation
- Dollar-Cost Averaging: Regular contributions reduce timing risk
- Time Horizon: Longer periods allow more compounding and risk tolerance
Formula
Compound Growth:
FV = P(1 + r)^t + PMT * [((1 + r)^t - 1) / r]
Where: FV = Future Value, P = Principal, r = Rate, t = Time, PMT = Periodic Payment
Risk Profile Guidelines
Conservative
Bonds, CDs, stable assets (~4.5% return)
Moderate
Balanced portfolio (~6.5% return)
Growth
Stock-heavy allocation (~8% return)
Aggressive
Maximum equity exposure (~10% return)