Investment Calculator — Project Your Future Wealth
Future value of an initial investment plus periodic contributions, with a compounding schedule.
Advanced Options
Adjusts results for inflation. Historical average is ~3%.
Estimated tax rate on investment gains. Use 0 for tax-advantaged accounts (401k, IRA).
- Principal
- Contributions
- Interest
| Year | Deposit | Interest | Balance |
|---|---|---|---|
| Year 1 | $12,000.00 | $1,630.80 | $33,630.80 |
| Year 2 | $12,000.00 | $2,471.51 | $48,102.31 |
| Year 3 | $12,000.00 | $3,364.09 | $63,466.40 |
| Year 4 | $12,000.00 | $4,311.71 | $79,778.10 |
| Year 5 | $12,000.00 | $5,317.78 | $97,095.88 |
| Year 6 | $12,000.00 | $6,385.90 | $115,481.79 |
| Year 7 | $12,000.00 | $7,519.90 | $135,001.69 |
| Year 8 | $12,000.00 | $8,723.85 | $155,725.54 |
| Year 9 | $12,000.00 | $10,002.05 | $177,727.59 |
| Year 10 | $12,000.00 | $11,359.09 | $201,086.68 |
- Total Balance
- Principal + Contributions
The gap between the solid and dashed lines represents interest earned.
The four variables of investing
- Return rate — the percentage your investment earns per year; the headline figure used to compare opportunities.
- Starting amount — the principal you begin with (savings, an inheritance, a lump sum).
- Investment length — how long the money compounds. Longer horizons mean more compounding, though also more exposure to risk.
- Additional contributions — regular deposits that boost your end balance significantly over time.
Why compounding matters
Each period's interest is added to your balance and itself earns interest, so returns accelerate over time. A young investor who puts $1,000 into the stock market at a 10% average annual return (the S&P 500's long-run average) would see it grow roughly 73× by retirement — the power of compounding over decades.
Types of investments
- CDs — low-risk, FDIC-insured bank deposits with a fixed term and rate.
- Bonds — lending to a company or government for regular interest and return of principal.
- Stocks — equity ownership with higher expected return and higher volatility.
- Real estate — property that can appreciate and generate rental income.
- Index funds / ETFs — low-cost baskets of many stocks that capture broad market returns.
Contributions made at the beginning of each period earn one extra compounding period versus end-of-period deposits.
Open a Brokerage Account
Start investing with a top-rated broker. Low fees, no account minimums.
CreditGrok may earn a commission from links on this page. This does not affect our recommendations.