Investment Growth Calculator
Project investment growth with compound interest and monthly contributions.
Enter starting balance, annual return, and years to see future value.
FV = PV(1+r)^n + PMT × [((1+r)^n - 1) / r]
This is the future value formula with regular contributions, the standard equation for projecting investment growth over time with compound interest.
What each variable means:
- FV – Future Value, the total amount your investment will be worth
- PV – Present Value, your initial lump-sum investment
- r – the periodic interest rate (annual rate divided by 12 for monthly compounding)
- n – total number of compounding periods (years multiplied by 12)
- PMT – your regular monthly contribution
When to use this calculator: Use it to project how your savings or investments will grow over time. It is ideal for retirement planning, education funds, or any long-term savings goal where you make regular contributions.
Practical example: You invest $10,000 today and add $500 per month at 7% annual return for 20 years. Your total contributions would be $130,000, but compound interest grows your balance to approximately $270,000. That means you earned roughly $140,000 in interest alone – more than your contributions.
Tips:
- The stock market has historically returned about 7-10% annually over long periods, but returns are never guaranteed.
- Even small monthly contributions add up dramatically over decades thanks to compounding.
- Starting 5 years earlier can make a bigger difference than contributing more money later.
- The calculator separates your total contributions from interest earned so you can see how much compounding contributed.