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Investment Calculator

Project the future value of your investments with lump sum and monthly contributions. See growth charts and year-by-year breakdowns.

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Future Investment Value
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Total Contributions$0
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Year-by-Year Growth

About Investment Calculator

This investment calculator projects how your money can grow over time by combining an initial lump sum with regular monthly contributions and compound interest. Enter your starting balance, monthly addition, expected annual return rate, and time horizon to see the projected future value. The calculator separates your total contributions from the interest earned, showing the true power of compounding. A year-by-year growth table and a visual chart illustrate how your investment builds over time. Whether you are saving for retirement, a child education fund, or building generational wealth, this tool helps you set realistic expectations and make informed investment decisions. It uses the standard future value formula with compound interest and regular annuity contributions applicable to stocks, mutual funds, ETFs, index funds, and retirement accounts.

How to Use This Calculator

Enter your initial investment amount — for example, $10,000. Set your expected annual rate of return (say 8% for a balanced stock-bond portfolio) and choose how long you plan to invest (10 years). You can optionally add a recurring monthly contribution like $500. Click 'Calculate' to see the future value of your investment, total contributions made, and the total interest earned over the full period.

When to Use This Calculator

Use this calculator when planning long-term financial goals like retirement, a child's education fund, or saving for a down payment. It's also helpful when comparing different investment strategies — for example, a lump sum vs monthly SIP approach, or different asset allocation assumptions. Revisit it whenever you receive a bonus or windfall to see how investing that money now could grow over time. It's also a great tool for understanding the impact of inflation-adjusted returns.

How to Interpret Your Results

Suppose you invest $10,000 with $500 monthly additions at 8% annually for 10 years. Your total contributions would be $70,000, but the future value would be approximately $109,000, meaning you earned about $39,000 in interest. If you compare this to a 6% return scenario ($94,000), the 2% difference costs you $15,000 — illustrating why even slightly higher returns matter. The breakdown helps you see how much of the growth comes from your contributions vs compound earnings.

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Frequently Asked Questions

How does compound interest create wealth over time?

Compound interest means you earn returns not just on your principal, but also on previously earned returns. A Rs. 10,000 investment at 7% grows to Rs. 10,700 in year one. In year two, you earn 7% on Rs. 10,700, not just the original Rs. 10,000. Over 30 years, that Rs. 10,000 grows to approximately Rs. 76,123. With monthly additions of Rs. 5,000, the same 30-year period yields roughly Rs. 61 lakh. Time is the most powerful factor.

What is a realistic expected return for stocks?

Historical S&P 500 returns average 7-10% annually after inflation. Indian equity (Sensex/Nifty) has returned 12-15% over the past 30 years. Bond returns average 6-8%. A balanced portfolio of 60% stocks and 40% bonds has historically returned 8-10%. Use conservative estimates (8-10% for equity, 6-7% for debt) when planning. Higher expected returns require taking more risk.

How often should I rebalance my portfolio?

Annual rebalancing is sufficient for most investors. Check your portfolio each January and adjust if any asset class has drifted more than 5% from your target allocation. For example, if your target is 70% equity and it has grown to 80%, sell some equity and buy debt to return to 70%. This disciplined approach forces you to sell high and buy low.

What is the difference between active and passive investing?

Active investing tries to beat the market through stock selection and timing. Passive investing (index funds, ETFs) simply tracks the market. Over 10+ years, 85-90% of active fund managers underperform their benchmark index. Passive funds also have much lower expense ratios (0.1-0.5% vs 1-2% for active). For most retail investors, a passive approach using index funds or ETFs is recommended.

How do taxes affect my investment returns?

In India, equity investments held over 12 months incur 10% LTCG tax on gains above Rs. 1 lakh. Short-term gains are taxed at 15%. Debt funds held over 3 years are taxed at 20% with indexation. These taxes significantly reduce your effective returns. A 12% pre-tax return becomes roughly 10.8% post-tax for equity (long-term). Factor taxes into your retirement and investment planning using our Income Tax Calculator.
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