Investment Growth Calculator

Growth is a function of time, savings, and return

Investment growth is driven by three levers: how much you start with, how much you add over time, and the return your portfolio earns. Over long periods, compounding can make small differences in return meaningful — but consistent contributions are often the most controllable factor.

This calculator uses a monthly model because many people contribute monthly (for example, through payroll or automatic transfers). Each month, your contribution is added and the balance grows by a monthly rate derived from your annual return assumption.

Fees matter because they reduce your net return. Here we model fees as a simple “fee drag” by subtracting an annual fee percentage from the gross return. That is an approximation, but it’s useful for comparing scenarios like 0.25% vs. 1.00% expense ratios.

How to pick return and fee assumptions

Your annual return is an assumption. For diversified long-term portfolios, people often test a range of nominal returns (for example 5%–9%). If you want a more conservative plan, choose the lower end of the range and focus on increasing contributions rather than relying on a higher return.

Fees are easier to estimate because they are disclosed. Expense ratios, advisory fees, and platform fees all reduce net results. Even a difference of 0.50% per year can matter over decades because it compounds in reverse — it reduces growth every year, not just once.

Nominal vs. real results (inflation)

This calculator is nominal: it shows future dollars without adjusting for inflation. If inflation averages 3% per year, $100,000 in 25 years will not buy the same basket of goods as $100,000 today.

To get a rough “real” projection, you can reduce your return assumption by your inflation estimate (for example 7% nominal return and 3% inflation implies about 4% real return). That’s an approximation, but it can help you sanity-check long-term goals.

Using the chart to compare scenarios

The balance chart helps you see whether growth is mostly contribution-driven or return-driven. Early years tend to be contribution-heavy; later years tend to show steeper growth as compounding has more time to work.

If you’re deciding between increasing contributions or accepting more risk for higher returns, the chart makes the trade-off visual. For most plans, increasing contributions is the lever you can control with the least uncertainty.

Limitations: fees, taxes, and volatility

Modeling fees by subtracting an annual percentage is a planning shortcut. Real fees are typically charged based on assets over time, and some portfolios have multiple layers of fees. The approximation is still helpful because it captures the main effect: persistent fees reduce compounding.

This projection does not include taxes. In taxable accounts, dividends, interest, and capital gains can reduce net returns. In retirement accounts, tax treatment differs. If you want a conservative after-tax plan, reduce the return assumption slightly.

Finally, real returns are volatile and the sequence of returns matters. For high-stakes planning, consider using a lower return assumption or building a buffer so your plan can tolerate uncertainty.