Portfolio Value Calculator
Project the future value of your investment portfolio based on initial capital, monthly contributions, and estimated returns.
Understanding Compound Growth
The secret to building long-term wealth is compound interest. Compound interest occurs when you earn interest not only on your initial investment, but also on the interest that has accumulated from previous periods.
The Power of Consistency
While an initial lump sum is great, making consistent monthly contributions drastically accelerates the growth of your portfolio, especially when applied over a timeline of decades.
Worked Example
- Initial Investment: $10,000
- Monthly Contribution: $500
- Annual Return: 7%
- Years: 10
- Future Value: ~$106,478
- Total Contributions: $70,000
- Interest Earned: $36,478.
Frequently Asked Questions
What is a realistic annual return rate?
Historically, the S&P 500 has returned an average of 9% to 10% per year before inflation. For conservative planning, many advisors use 6% to 7%.
Disclaimer: This calculator is for educational and informational purposes only. It is not a substitute for professional financial advice. Results are estimates based on the information provided and may not reflect actual outcomes. Please consult with a qualified financial advisor, accountant, or tax professional before making any financial decisions. Past performance does not guarantee future results.