Investment Growth Calculator
See how the power of compound interest multiplies your money over time. Compare your total deposits against the total interest earned.
Nominal annual return compounded at the selected frequency; fees applied as annual percentage drag and contributions at month end. Not a forecast. Taxes and inflation excluded.
Total Future Value
$343,778
Principal
$130,000
Interest Earned
$213,778
Balance History
Investment growth calculator assumptions
Quick answer: An investment growth calculator projects a future value from the starting balance, additional contributions, time horizon and assumed annual return. The result is a scenario, not a forecast, and does not include every fee, tax or market risk.
Rate of return
Test more than one average annual return. Actual returns vary by investment type and can be negative, especially over shorter periods.
Contribution timing
A recurring additional contribution can materially change the projection. Match the calculator frequency to the schedule you can sustain.
Nominal versus real value
A nominal balance does not show future purchasing power. Consider inflation, taxes and fees before using the result for a goal.
Scenarios to calculate
- Compare monthly and annual contributions.
- Stress-test a lower annual return.
- Compare nominal growth with an inflation-adjusted goal.
Next: estimate retirement savings, model a financial-independence goal, model dividend reinvestment.
Compound Interest — Frequently Asked Questions
What is compound interest?
Compound interest is the interest on your interest. Unlike simple interest (which only pays on your original deposit), compound interest pays you returns on both your initial principal AND the accumulated interest from previous years. This causes your wealth to grow exponentially over time.
What is a realistic interest rate to use?
There is no universally realistic rate. Use several scenarios based on the investment type, fees, taxes, inflation and time horizon. Historical market returns and today’s savings yields are not guaranteed future returns.
Is it better to invest a lump sum or monthly?
A lump sum has more time exposed to market returns, while phased investing can reduce timing anxiety and fit cash flow. The appropriate choice depends on liquidity needs, risk tolerance, taxes and whether the money is already available.
Continue your financial research
Use these closely related USFinNexus guides and tools to plan your next step.
For money needed soon, compare Treasury bills and high-yield savings.
For longer-term choices, consider stock index investing versus direct real estate.
Before following an automated recommendation, read the limits of AI investing tools.
Related guides
Related calculators
- FIRE PlannerEstimate an early-retirement savings timeline.
- Retirement CalculatorProject savings, contributions and retirement income.
Illustrative comparison scenarios
| Assumed return | Contributions | Projected balance |
|---|---|---|
| 0% | $130,000 | $130,000 |
| 3% | $130,000 | $182,359 |
| 5% | $130,000 | $232,643 |
| 7% | $130,000 | $300,851 |
| 9% | $130,000 | $394,035 |
Educational scenarios, not quotes, approvals, investment forecasts or tax advice. See methodology and limitations.