Investment calculator
Projected value in 25 years
- Total you invest
- $160,000
- Investment growth
- $388,915
- Value in today's money
- $296,080
- Monthly investment
- $500.00
- Projected value in 25 years
- $548,915
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The short answer
Enter a starting amount, a monthly investment, an expected return and a time frame. The calculator projects the future balance, separates your contributions from growth, and converts the result into today's money using an inflation assumption.
Contributions do the early work, growth does the late work
In the first decade most of the balance is money you deposited. Somewhere in the second decade growth overtakes contributions, and from then on the compounding does more each year than you do.
Pick a defensible return
A globally diversified stock portfolio has historically averaged high single digits before inflation.
A mixed stock-and-bond portfolio sits lower, with smaller swings.
Fees come straight off the return — subtract them from the rate you enter.
Real markets never deliver the average every year; treat the output as a range, not a promise.
The formula
FV = P(1 + r)^n + PMT x [((1 + r)^n - 1) / r], monthly. Real value = FV / (1 + inflation)^years.
FAQ
How the interest calculator estimates compound growth
Compound interest applies each period’s rate to the starting balance plus previously credited interest. This interest computation differs from simple interest, which calculates interest only on the original principal. A daily compound interest calculator uses more compounding periods than a monthly or annual model, although the practical difference depends on the stated rate, account terms, and length of time.
Enter a starting amount, recurring contribution, assumed return, compounding frequency, and time horizon. The resulting future value calculator estimate is not a guarantee, particularly when modeling an investment with changing returns. For deposit accounts such as high yield savings, compare the annual percentage yield rather than relying only on the stated interest rate. The rule of 72 can provide a rough mental estimate, but a calculator offers more detail.
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