Investment Calculator
Calculate how your investments grow over time with compound interest and regular annual contributions.
How the Investment Calculator Works
This investment calculator uses the future value formula for compound interest combined with regular annual contributions. The formula is FV = P × (1 + r)^n + PMT × [((1 + r)^n − 1) / r], where P is your initial investment, r is the annual return rate, n is the number of years, and PMT is your annual contribution. The power of compounding means that returns build on previous returns, accelerating growth over time.
For a deeper understanding of how compound growth works mathematically, try our Compound Interest Calculator, which lets you choose different compounding frequencies and see APY calculations. If you prefer monthly contributions over annual ones, the Savings Calculator models monthly deposits with monthly compounding.
Keep in mind that investment returns are not guaranteed and actual results will vary. The chart above shows projected growth based on a constant rate of return, which is a simplification of real market behavior. Diversification and consistent contributions over a long time horizon are key principles of sound investing.
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For a related calculation, use Savings Calculator to calculate how your savings grow with regular monthly contributions and compound interest. Alternatively, use Simple Interest Calculator to calculate simple interest and compare it side-by-side with compound interest.
For the underlying method, read Compound Interest Calculator Guide: Compare Rates, Timing, and Compounding or Understanding Compound Interest: The Most Powerful Force in Finance.