💰 Financial
Investment Calculator
Project the future value of your investments by accounting for an initial balance, regular monthly or annual contributions, and an estimated rate of return.
⏳
Formula
FV = P(1+r/n)^(nt) + PMT × [((1+r/n)^(nt) - 1) / (r/n)]FV- Future Value
P- Initial investment (Principal)
PMT- Regular contribution amount
r- Expected annual return
n- Compounding frequency
t- Time in years
Example
Building Wealth Over 20 Years
Starting with $5,000 and investing $300 every month at a 7% expected return.
- Initial deposit growth: The $5,000 grows to $20,195 over 20 years.
- Contributions growth: The $300 monthly payments ($72,000 total) grow to $156,278.
- Result: Your total investment value will be $176,473, of which $99,473 is pure investment growth.
Frequently Asked Questions
If you want to know the "real" purchasing power of your future money, subtract inflation (typically 2-3%) from your expected return. For example, if you expect an 8% market return, use 5% to see the inflation-adjusted value.
Calculators usually assume contributions are made at the end of the month (ordinary annuity). If you contribute at the beginning of the month, your final balance will be slightly higher.