Investment Return Calculator - Calculate ROI, Compound Interest & Growth

Calculate investment returns, compound interest, and portfolio growth. Free investment calculator with annual contributions, inflation adjustment, and detailed projections for smart investing.

Last updated: 1/27/2025

Investment Settings

Contribution Frequency:

Initial Investment

$

Monthly Contribution

$

Expected Annual Return (%)

%

Investment Time Horizon

Inflation Rate (%)

%

Management Fees (%)

%

Investment Projection Results

Final Value:$0
Total Contributions:$0
Total Gains:$0
Real Value (Today's $):$0

Return Analysis

Investment Period:20 years
Total Return:0%
Annualized Return (Nominal):0%
Annualized Return (Real):0%
Annual Fees:0.5%
Contribution Frequency:Monthly

Investment Strategy Tips

Time in Market: Long-term investing typically outperforms market timing

Dollar-Cost Averaging: Regular contributions reduce the impact of market volatility

Diversification: Spread risk across different asset classes and sectors

Fee Awareness: Even small fees can significantly impact long-term returns

Tax Efficiency: Consider tax-advantaged accounts like 401(k)s and IRAs

How to Use Our Investment Return Calculator

Project your investment growth with our comprehensive calculator. Plan for retirement, education, or long-term wealth building with accurate compound return projections.

1

Set Investment Parameters

Enter your initial investment, regular contribution amount, expected return rate, and investment time horizon.

2

Adjust for Reality

Include inflation adjustments and management fees for realistic projections. Choose your contribution frequency for accurate modeling.

3

Analyze Growth Projections

Review final values, total gains, real purchasing power, and year-by-year breakdown to optimize your investment strategy.

Compound Interest Formula

A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)]

Where A = Final Amount, P = Principal, r = Annual Rate, n = Compounding Frequency, t = Time, PMT = Regular Payment

Why Use Our Investment Return Calculator

Make informed investment decisions with comprehensive projections and realistic return modeling.

Compound Growth Modeling

Accurate compound interest calculations show how your money grows over time, including reinvested earnings and regular contributions.

Inflation Adjustment

Calculate real returns by factoring in inflation, showing your true purchasing power growth over the investment period.

Fee Impact Analysis

See how management fees and expenses affect your long-term returns, helping you choose cost-effective investment options.

Flexible Contribution Schedules

Model monthly, quarterly, or annual contributions to match your investment strategy and cash flow situation.

Year-by-Year Breakdown

Optional detailed projections show how your portfolio grows each year, perfect for retirement and goal planning.

Multiple Scenarios

Compare different return rates, time horizons, and contribution amounts to optimize your investment strategy.

Frequently Asked Questions

How is compound interest calculated on investments?

Compound interest is calculated using the formula A = P(1 + r/n)^(nt), where P is principal, r is annual interest rate, n is compounding frequency, and t is time in years. This includes both initial investment growth and returns on reinvested earnings.

What's a realistic annual return for long-term investments?

Historically, the stock market has averaged about 10% annual returns over long periods, but this varies significantly. Conservative estimates use 6-8% for diversified portfolios, while aggressive growth might target 10-12%. Always consider inflation and fees.

Should I include inflation in my investment calculations?

Yes, inflation reduces purchasing power over time. Historical inflation averages 2-3% annually. Calculating real returns (nominal return minus inflation) gives a more accurate picture of wealth growth.

How often should I make investment contributions?

More frequent contributions benefit from dollar-cost averaging and compound growth. Monthly contributions are popular for most investors, though quarterly or annual contributions can also be effective depending on your situation.

What's the difference between nominal and real returns?

Nominal returns are the actual percentage gain on your investment. Real returns adjust for inflation, showing your true purchasing power increase. A 7% nominal return with 2% inflation equals a 5% real return.

How do fees affect my investment returns?

Investment fees compound negatively over time. A 1% annual fee can reduce your total returns by 20-30% over 30 years. Always factor in expense ratios, management fees, and transaction costs when calculating expected returns.

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