Investment Calculator

Q: What is the basic formula for investment?

The basic investment formula is: This equation calculates the future value of an investment, where A represents the ending balance, P is the initial investment, r is the annual interest rate, n is the compounding frequency per year and t is the total number of years. Adjust each variable to explore how different rates, time frames and contribution amounts influence overall growth.

Use MoneyGeek's free investment calculator to estimate your investment balance. Enter your initial deposit and contribution amounts, contribution frequency, and other details to see how your money could grow over time.

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Investment Growth and Return Calculator

By Nathan Paulus

Edited by Venus Zoleta

Updated: October 29, 2025

Advertising & Editorial Disclosure

How to Use MoneyGeek’s Investment Calculator

Enter your initial deposit, contribution amount, contribution frequency, expected rate of return and compound frequency. Experiment with different values to see how each factor impacts your overall balance.

The calculator treats contributions as if made at the beginning of each period. Monthly contributions compound immediately, boosting your balance faster. Adjust the rate of return based on historical market averages to model conservative and aggressive growth scenarios.

MoneyGeek's investment calculator shows cumulative totals for principal and interest. You'll see exactly how small changes affect your long-term growth.

1
Set an initial deposit
Your initial deposit forms the foundation of your investment. Enter the amount you plan to start investing with. This base determines your investment's overall potential since all future gains build from it.
2
Enter your contribution amount
Input any regular additions you plan to make to your investment. Monthly or annual contributions grow your balance consistently and expand your total returns over time.
3
Choose your contribution frequency
Your contribution frequency affects growth speed. Monthly contributions introduce funds more often, compounding frequently for faster growth. Annual contributions compound less often but still add long-term value. Choose a frequency matching your budget and investment strategy.
4
Define your investment time period
Your investment length impacts your outcome. Enter your intended time frame to see how longer durations allow compound interest to work through more cycles. Shorter periods yield returns, but longer investments achieve greater growth through repeated compounding.
5
Input an estimated rate of return
This rate reflects your investment's annual growth based on asset type and market trends. Input the average return rate of your preferred investment (7% to 10% for stocks or lower for bonds) to see a realistic growth projection. A practical rate gives you a benchmark, aligning expectations with historical performance.
6
Select a compound frequency
Interest frequency, monthly or annually, affects investment growth speed. Monthly compounding applies interest more often, boosting your balance efficiently over time. Monthly compounding enhances long-term results, especially in larger or longer-term investments.

How to Read the Results

MoneyGeek's investment calculator displays three main values: Total Balance, Total Principal and Total Interest. These represent your investment's overall value, the amount you've contributed and the interest earned. Comparing these values shows how much growth comes from your contributions versus compounding interest.

An upward trend means your balance grows over time, with interest and contributions working together to increase your total. A flatter trend suggests slower growth, which happens in shorter time frames or at lower rates of return. These visual cues show your investment's progress. If growth looks slower than expected, adjust your contributions or time frame.

SAMPLE CALCULATION

Starting with an initial deposit of $5,000 and adding $200 each month with an estimated 6% annual return compounded monthly over 10 years, you can see how regular contributions and compounding work together to build your investment.

After 10 years, you can expect a total balance of around $41,873. Of this amount, $29,000 comes from your contributions, while $12,873 comes from compounding interest. Interest compounds on your initial deposit and each monthly contribution, so your balance grows faster each year.

Regular contributions boost growth over time. Adjusting your time frame or monthly contributions leads to greater returns, showing how each decision in your investment strategy shapes the final outcome.

Why Use an Investment Calculator?

MoneyGeek's investment calculator helps you estimate potential returns, explore different contribution strategies and plan for long-term financial growth. From visualizing investment growth to comparing strategies, the tool provides insights to guide your decisions and align with your financial goals.

Predict investment returns

Estimate how much your investment will grow over time based on your starting amount and regular contributions. Setting realistic expectations provides a clearer picture of your potential returns, helping you plan for your financial goals.

Visualize investment growth

Graphs show principal and interest growth over the years. See how compound interest builds your balance through repeated cycles, especially in long-term investments. If you want to calculate compound interest alone, use MoneyGeek’s compound interest calculator.

Plan for retirement

If you’re thinking about retirement, this tool helps you figure out how much you need to save to reach your goals. You can test different scenarios, like adjusting your monthly contributions or expected return, to find a strategy that aligns with your retirement plans.

Optimize contribution strategies

Experiment with contribution frequency or amount to see how small changes boost your growth. Consistent contributions, especially when planned thoughtfully, can give your investment the long-term boost it needs.

Compare different investment scenarios

This calculator also lets you compare different approaches, whether you’re considering conservative or aggressive strategies. Align your investment choices with your goals and comfort with risk to create a plan that works for you.

Types of Investments

The calculator can project growth for different types of investments, from stocks and bonds to real estate and commodities. Each type has unique potential returns and risks, letting you visualize growth based on your investment choice and strategy.

Type	Description	How to Use the Calculator
Stocks	Investing in stocks means buying ownership in a company, with potential returns through price appreciation and dividends. Stocks fluctuate in value. The S&P 500 Index averages an annual return of almost 10% over the long term.	Project stock performance by entering your starting amount and setting up a monthly contribution. Apply a 9–10% return rate as a benchmark. Adjust the rate to visualize potential scenarios based on regular contributions and compounding effects.
Mutual Funds	Mutual funds pool money from many investors to buy a diversified mix of assets like stocks and bonds, reducing individual risk. Returns vary depending on the fund's focus. Equity funds can align with the S&P 500, while bond funds are closer to 5%.	Add your initial investment and monthly contributions, applying a rate specific to your fund type. You'll see potential growth and test different contribution levels.
Bonds	Issued by corporations or governments, bonds provide predictable interest income in exchange for lending capital. A diversified U.S. bond portfolio averages around 5% in annual returns, making bonds a conservative investment option.	Start with your initial deposit and choose a regular contribution amount. Using a rate around 5%, the calculator shows how steady bond interest compounds, projecting predictable income growth over time.
Real Estate	Real estate investment involves owning physical property or investing in REITs, with returns from property appreciation and rental income. According to the National Association of Real Estate Investment Trusts (Nareit), private commercial real estate yields around 8–12% annually over the long term, varying by sector and market conditions.	Input your starting property investment and any planned contributions. Using an estimated 8–12% growth rate, the calculator visualizes long-term property value growth, factoring in compounding from appreciation and rental income.
Commodities	Commodities like gold, oil and agricultural goods are physical assets that often serve as hedges against inflation. For example, gold has had an average annual return of around 10% since the 1970s, though commodity prices are known for volatility.	Enter your initial investment and expected return range. The calculator models potential value changes, showing how price fluctuations could impact returns over time.

Investment Growth vs. Investment Return

Investment growth and return are related but serve different purposes in evaluating performance.

Investment growth shows how your total balance expands over time, including your initial deposit, regular contributions, compounded interest and potentially reinvested earnings like dividends. This growth reflects the cumulative value of your investment, giving you a clear view of your portfolio's overall increase.

Investment return measures the percentage gained relative to your initial deposit, focusing on income generated rather than total balance. This return rate shows how your initial capital works for you, factoring in income such as dividends or interest and offering insight into your investment's efficiency without including additional contributions.

SAMPLE SCENARIO: GROWTH VS. RETURN

Start with an initial deposit of $10,000 and add $500 each month with an annual return of 5% compounded monthly over 10 years.

Investment growth projects a balance of approximately $94,111 after 10 years, which includes your initial deposit, all monthly contributions and compounded interest. This total growth reflects how contributions and compounding build from the original sum over time.

For investment return, focus solely on the income generated from the initial $10,000 deposit, excluding monthly contributions. In the first year, this deposit yields around $500 in return, representing a 5% return rate on the initial amount. While growth shows the entire balance with contributions, return isolates the initial capital's performance, showing how that original sum generates income on its own.

Investment Calculator FAQ

Get helpful answers on how to use the investment calculator effectively, including choosing a return rate, calculating ROI and planning your investment period.

What is the basic formula for investment?

The basic investment formula is:
Investment Calculator - Formula.png

This equation calculates the future value of an investment, where A represents the ending balance, P is the initial investment, r is the annual interest rate, n is the compounding frequency per year and t is the total number of years. Adjust each variable to explore how different rates, time frames and contribution amounts influence overall growth.

How accurate are investment calculators?

Investment calculators offer estimates based on the information you enter, but real returns vary due to market fluctuations and unexpected economic conditions. While they provide realistic projections, they don't account for variables like inflation or fees. Consider them a personal finance planning tool for setting expectations and comparing different scenarios.

What return rate should I use in the calculator?

The return rate depends on your investment. Historically, the S&P 500 Index has returned about 9% to 10% annually. For bonds, a diversified U.S. bond portfolio averages closer to 5%. Mutual funds vary. For a reliable rate, consult the fund’s specific historical performance. If you’re unsure, use an average with these ranges as a conservative estimate.

How do you calculate ROI on investment?

Return on Investment (ROI) is calculated by dividing the net profit by the initial investment and multiplying by 100 to get a percentage. For example, if you earn $1,000 on a $10,000 investment, your ROI is 10%. This metric shows the efficiency of your investment in generating profit.

How often should I review my investment strategy?

A good rule of thumb is to review your investments at least once a year. For those focused on long-term investing, regular check-ins help keep your strategy on track. Major life changes, like a new job, home purchase or retirement goal, also warrant additional reviews to ensure your approach aligns with your goals.

About Nathan Paulus

Nathan Paulus is the Head of Content Marketing at MoneyGeek, with nearly 10 years of experience researching and creating content related to personal finance and financial literacy.

Paulus has a bachelor's degree in English from the University of St. Thomas, Houston. He enjoys helping people from all walks of life build stronger financial foundations.

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sources

BlackRock Investment Institute. "BlackRock Asset Return Map." Accessed October 29, 2025.
National Association of Real Estate Investment Trusts. "Annual Index Values and Returns." Accessed October 29, 2025.
Official Data Foundation. "S&P 500 Returns Since 1928." Accessed October 29, 2025.
World Gold Council. "Gold Spot Prices." Accessed October 29, 2025.