What is an Investment Calculator?
An investment calculator shows you how your money can grow over time through the power of compound returns. Enter your starting amount, expected return rate, and regular contributions to see where you could be in 5, 10, or 30 years.
The magic is in compounding: your investment earnings generate their own earnings. A $10,000 investment growing at 8% annually becomes $21,589 in 10 years, $46,609 in 20 years, and $100,626 in 30 years—without adding a single extra dollar.
See Compound Growth
Visualize how your money multiplies over decades
Regular Contributions
See the impact of consistent monthly investing
Time Horizon Impact
Understand why starting early matters so much
Compare Scenarios
See how different return rates affect your outcome
Typical historical returns for reference:
- S&P 500 — ~10% average annual return historically (7% after inflation)
- Bonds — ~4-6% for investment-grade bonds, lower risk
- High-yield savings — ~4-5% APY currently (varies with Fed rates)
- Real estate — ~8-12% including appreciation and rental income
Important: Past Performance
Historical returns don't guarantee future results. Markets fluctuate—some years you'll gain 20%, others you might lose 10%. Use this calculator for planning, but invest in diversified portfolios and think long-term.
How much will my investment grow?
This calculator projects the future value of a starting amount plus regular contributions — a SIP (systematic investment plan). A lump sum grows on its own, while each monthly contribution grows as an annuity. Add the two together for your projected total.
Lump sum: FV = PV × (1 + r)n
Contributions: FV = PMT × (((1 + r)n − 1) / r)
where PV = starting amount, PMT = each contribution, r = the rate per period and n = the number of periods.
Want the concept behind "interest on interest" and the A = P(1 + r/n)nt formula explained in full? See our Compound Interest calculator.
Lumpsum vs SIP (monthly investing)
With a lumpsum you invest one large amount up front. With a SIP you invest a fixed amount every month. Investing regularly means you buy at many different prices, so rupee-cost (dollar-cost) averaging lowers your timing risk — you are not betting everything on a single entry point.
| Factor | Lumpsum | SIP (monthly) |
|---|---|---|
| How you invest | One large amount, all at once | A fixed amount at regular intervals |
| Best suited to | A windfall, bonus or maturing deposit | A regular income (salary) |
| Timing risk | Higher — everything enters at one price | Lower — spread across many prices |
| Averaging | None | Rupee-/dollar-cost averaging smooths entry price |
| Growth math | FV = PV × (1 + r)ⁿ | FV = PMT × (((1 + r)ⁿ − 1) / r) |
Neither is universally "better." A SIP suits a steady income and reduces the risk of investing at the wrong moment; a lumpsum can work when you already hold the cash and have a long time horizon.
What return rate should I assume?
Over long periods, stock-market averages have historically been around 7–10% nominal. Bonds have typically returned less, and cash the least. These are historical ranges, not promises — returns are not guaranteed and past performance is not future results.
When you project decades ahead, prefer conservative assumptions. A lower expected rate builds in a margin of safety; if the market does better, you simply reach your goal sooner. This tool is for education only and is not financial advice.
Worked example
Start with $5,000 and add $300 a month at 8% for 20 years. The projected total is about $196,000.
- You contribute only about $77,000 over the 20 years ($5,000 up front + $300 × 240 months).
- The remaining ~$119,000 is growth — earnings compounding on earnings.
Illustrative only, at a fixed 8% annual return. Real returns vary year to year.
SWP (systematic withdrawal)
A systematic withdrawal plan (SWP) is the reverse of a SIP: instead of adding money each month, you withdraw a fixed amount while the remaining balance keeps earning returns. It is commonly used to draw a regular income from a lump sum in retirement.
Because withdrawals shrink the balance while growth tries to rebuild it, the pot lasts longer when the return rate is higher and the withdrawal rate is lower.
Frequently Asked Questions
References & methodology
Projections use the standard future-value formulas — lump sum FV = PV × (1 + r)n and contributions FV = PMT × (((1 + r)n − 1) / r) — cross-checked against the sources below. This page is for education only and is not financial advice; consult a qualified advisor before investing.