Investment Calculator - Calculate Future Value & Returns
Free online investment calculator to calculate future value, returns, and compound growth. Plan your investments with monthly contributions and annual returns.
Investment Details
Investment Results
Enter investment details to calculate future value
About Investment Calculator
The Investment Calculator helps you calculate the future value of your investments using compound interest and regular contributions.
Formula Used:
Future Value = Initial × (1 + r)^n + Monthly × [((1 + r)^n - 1) / r]
Where:
- Initial = Initial investment amount
- Monthly = Monthly contribution amount
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of months (years × 12)
Types of Investments:
- Stocks: Ownership shares in companies
- Bonds: Fixed-income securities
- Mutual Funds: Diversified investment portfolios
- ETFs: Exchange-traded funds
- Real Estate: Property investments
- Retirement Accounts: 401(k), IRA, etc.
Factors Affecting Returns:
- Initial investment amount
- Regular contribution frequency and amount
- Expected annual return rate
- Investment time horizon
- Market conditions and volatility
- Fees and expenses
Applications:
- Retirement planning
- Long-term savings goals
- Investment strategy planning
- Comparing investment options
Note: This calculator provides estimates based on fixed returns. Actual investment performance may vary significantly due to market fluctuations, fees, and other factors.
Frequently Asked Questions
How does compound interest work?
Compound interest is interest calculated on the initial principal and accumulated interest from previous periods. It allows your investment to grow exponentially over time.
What's a good annual return rate?
Historical stock market returns average around 7-10% annually, but this varies by investment type and market conditions. Conservative investments may return 3-5%, while riskier investments may return more.
Should I invest monthly or annually?
Monthly investing (dollar-cost averaging) can help reduce the impact of market volatility and is often more manageable for most investors.
How much should I invest monthly?
A common rule is to invest 10-20% of your income, but this depends on your financial situation, goals, and risk tolerance. Start with what you can afford consistently.
What's the difference between simple and compound interest?
Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus accumulated interest, leading to exponential growth.