Calculate the future value of your investment, including an initial lumpsum plus optional regular monthly contributions.
This tool projects the future value of an investment based on your initial amount, regular contributions, expected annual return rate, and time horizon. It's used for general financial planning, comparing investment scenarios, and setting realistic savings goals.
Future Value = Principal × (1 + r)ⁿ + Regular Contribution × [((1 + r)ⁿ − 1) ÷ r], where r is the periodic interest rate and n is the number of periods, combining growth from both the initial lump sum and ongoing contributions.
Enter your initial investment amount, any regular contribution amount, expected annual return rate, and investment time period, and the calculator projects your investment's future value.
Example: Investing $5,000 initially plus $200 monthly at an 8% annual return over 20 years grows to a substantial sum through the combined effect of compound growth on both the initial amount and ongoing contributions.
Why do regular contributions make such a big difference over time? Each contribution benefits from compound growth for the remaining time period, so contributions made early in a long investment horizon have significantly more time to grow than those made later, making consistent early investing particularly powerful.
Is the projected return rate guaranteed? No, this calculator uses your input as a constant assumed rate for projection purposes, but actual investment returns fluctuate with market conditions and are never guaranteed, especially for equity-based investments.
How does investment time horizon affect risk tolerance? Longer time horizons generally allow for more aggressive, growth-oriented investment strategies, since there's more time to recover from short-term market downturns, while shorter horizons often call for more conservative approaches.
What's the difference between simple and compound growth in investing? Simple growth earns returns only on the original principal, while compound growth earns returns on both the principal and previously accumulated returns, which is why compound growth accelerates significantly over longer time periods.
Should I account for inflation in investment projections? Yes, since inflation erodes purchasing power over time, some investors use an inflation-adjusted ("real") return rate in projections to better understand the actual future purchasing power of their investment, not just its nominal dollar value.