Project the future value of investments with regular contributions and compound growth.
Enter your starting balance, how much you will add each month, the average annual return you expect and how many years you plan to invest. The projection compounds monthly and assumes each contribution is made at the end of the month.
Returns are never guaranteed — try a conservative and an optimistic rate to see a range of outcomes. Taxes, fees and inflation are not deducted.
FV = P(1 + r)ⁿ + PMT × [(1 + r)ⁿ − 1] / rP = initial investment, PMT = monthly contribution, r = annual return ÷ 12, n = months. At a 0% return, FV = P + PMT × n.
Over the long run the US stock market has returned roughly 10% a year before inflation, or around 6–7% after inflation, but individual years vary widely. Many planners use 5–7% for a conservative, inflation-adjusted projection and lower rates for bond-heavy portfolios.
No. The result is in future (nominal) dollars. To see roughly what it would be worth in today’s money, enter a return rate that is already reduced by expected inflation (for example 7% − 3% = 4%).
Time in the market is usually more powerful than the amount contributed, due to compound growth. Starting early makes the biggest difference.
Begin by establishing an emergency fund (3–6 months of expenses), then contribute enough to any employer-matched retirement plan to get the full match — it is essentially free money. After that, consider low-cost index funds that provide broad market diversification. The key is to start early, invest consistently, and avoid timing the market.
Higher potential returns always come with higher risk. Stocks historically return 7–10% annually but can drop 30–50% in bad years. Bonds return 3–5% with much less volatility. Your ideal allocation depends on your time horizon: younger investors can tolerate more stock exposure, while those near retirement should shift toward bonds and stable assets.
Did you know?
The S&P 500 has returned an average of approximately 10.7% per year (about 7% after inflation) since its inception in 1957, despite crashes, recessions, and global crises.
The first stock exchange was established in Amsterdam in 1602 by the Dutch East India Company, which was also the first company to issue stock to the public. The New York Stock Exchange (NYSE) was founded in 1792 under a buttonwood tree on Wall Street when 24 stockbrokers signed the Buttonwood Agreement.
Dollar-cost averaging — investing a fixed amount at regular intervals — outperforms lump-sum investing about 33% of the time while reducing emotional decision-making.
The stock market has historically recovered from every crash. The average bear market lasts 9.6 months, while the average bull market lasts 2.7 years.
Index funds, which passively track a market index, outperform approximately 90% of actively managed funds over any 15-year period.
Dividends have contributed approximately 40% of total stock market returns historically.