Investment Return Calculator

Total return, annualized return, and the power of compounding.

Related guide: What is a good investment return?

How to use this calculator

Enter your initial investment, monthly contribution, expected annual return and years, then press Calculate. Future value, total invested, total return and annualized return are displayed with a growth chart.

Worked example

Invest $10,000 today, add $500 a month and earn 7% a year, and in 20 years you end up near $300,000 - of which you contributed $130,000 and compounding supplied the rest. Cut the return to 5% and the same habit lands closer to $235,000, which shows how much the rate matters over decades.

What the result means

The tool projects a future balance from your starting amount, monthly contributions and expected return. The monthly contribution line is the lever you control - returns are not, but consistency is.

Compound interest rewards time

• Most of the ending balance in long projections comes from compounding, not contributions.
• Starting five years earlier beats contributing more later in almost every scenario.
• Real returns vary year to year - treat the projection as a planning range, not a promise.

Frequently asked questions

What return should I assume?

For US stocks over long horizons, 6-8% after inflation is a common planning assumption. Blend in bonds and the expected return falls but so does the volatility.

Projections assume steady returns, but real markets swing. Stress-test your plan by running the calculator at two rates, say 5% and 7%, and ask whether you could still meet your goal at the lower one - if not, raise the contribution while you still have years of compounding ahead.