Investment Calculator
Project the future value of an investment with regular monthly contributions.
Growing Wealth Through Regular Investing
Consistent investing over time, combined with compound returns, is one of the most reliable ways to build wealth. This calculator projects the future value of an initial investment plus recurring monthly contributions.
The Formula
FV = P(1+r)n + C × [((1+r)n − 1) / r]
Where: FV = future value, P = initial investment, C = monthly contribution, r = monthly rate, n = total months.
The Power of Time
| Years | Contributions | Interest Earned | Future Value |
|---|---|---|---|
| 10 | $70,000 | $41,520 | $111,520 |
| 20 | $130,000 | $162,876 | $292,876 |
| 30 | $190,000 | $458,913 | $648,913 |
With $10,000 initial and $500/month at 8%, the interest earned in 30 years exceeds your total contributions by more than double. Start early to maximize the compounding effect.
Frequently Asked Questions
What is a realistic rate of return to assume?
The S&P 500 has historically returned about 10% annually before inflation, or roughly 7% after inflation. For conservative planning, use 6–8%. For bonds or savings, use 3–5%.
Does this account for inflation?
No. To estimate purchasing power, subtract the expected inflation rate (about 2–3%) from your return rate. For example, use 5% instead of 8% to see inflation-adjusted results.
Should I invest a lump sum or contribute monthly?
Statistically, lump-sum investing outperforms dollar-cost averaging about two-thirds of the time. However, monthly contributions reduce risk and are more practical for most people building wealth from income.