A simple, free investment growth calculator to project your investment growth and plan for your financial future. Perfect for understanding the power of compound interest. No Signup Required.
This calculator is for illustrative purposes only and does not guarantee investment results.
Past performance is not indicative of future returns.
Investment growth is driven by several key factors that work together to build wealth over time:
Average annual returns for major asset classes (1926-2022):
| Asset Class | Avg. Annual Return | Risk Level |
|---|---|---|
| Large-Cap Stocks | ~10.1% | Moderate-High |
| Small-Cap Stocks | ~11.9% | High |
| Government Bonds | ~5.5% | Low |
| Corporate Bonds | ~6.2% | Low-Moderate |
Note: Past performance is not indicative of future results.
Different approaches to growing your investments:
| Strategy | Best For |
|---|---|
| Dollar-Cost Averaging | Regular investors, volatile markets |
| Value Investing | Long-term growth, patient investors |
| Growth Investing | Higher returns, higher risk tolerance |
| Income Investing | Regular income, lower risk preference |
Key risks that can impact your investment growth:
| Risk Type | Mitigation Strategy |
|---|---|
| Market Risk | Diversification, longer time horizon |
| Inflation Risk | Growth investments, TIPS, real assets |
| Liquidity Risk | Emergency fund, balanced portfolio |
| Concentration Risk | Asset allocation across multiple sectors |
The concept of compound interest has been transforming wealth for centuries. Benjamin Franklin demonstrated its power in 1785 when he left £1,000 each to Boston and Philadelphia in his will, stipulating they could only access the funds after 200 years. By 1990, these modest sums had grown to approximately $5 million and $2.3 million respectively. Warren Buffett, despite being one of history's most successful investors, accumulated over 99% of his wealth after age 50 due to compounding. Interestingly, the world's first investment calculator appeared in 1972 with the HP-35 scientific calculator, revolutionizing financial planning by making complex growth projections accessible without mainframe computers.
Investment growth calculators employ more sophisticated mathematics than the basic compound interest formula. Modern calculators implement time-value-of-money equations that handle irregular contributions and withdrawals through recursive algorithms. Many incorporate sequence-of-returns risk analysis, which recognizes that identical average returns can produce dramatically different outcomes depending on when market downturns occur. The most advanced models employ stochastic calculus with log-normal distribution assumptions to simulate thousands of potential market scenarios, generating probability distributions rather than single-point estimates. This Monte Carlo approach reveals not just expected outcomes but confidence intervals, helping investors understand the range of possible results and make more informed risk assessments.
Our Investment Growth Calculator helps you project potential investment growth over time. It's perfect for individuals who want to plan their financial future and understand the power of compound interest.
Enter your initial investment amount, expected rate of return, investment duration, and any regular contributions. The calculator will show you potential growth scenarios based on these inputs.
Yes! The calculator automatically factors in compound interest, showing how your investments can grow exponentially over time through both returns on your initial investment and returns on your returns.
Yes, your calculations are automatically saved to your browser's local storage. They will remain available when you return to the calculator, even after closing your browser or restarting your device.
Yes, you can use this calculator for various investment types including stocks, bonds, mutual funds, or retirement accounts. Simply adjust the expected rate of return based on your investment strategy.
Yes, we take data security seriously. Your investment information is stored locally in your browser and never sent to our servers. This ensures complete privacy and security of your financial information.
Yes, you can easily adjust inputs to compare different scenarios, such as varying contribution amounts, rates of return, or investment timeframes to help make informed financial decisions.