Investment Calculator

Q: What is the basic formula for investment?

The basic investment formula is: This equation calculates your investment's future value. A is your ending balance, P is your initial investment, r is the annual interest rate (as a decimal), n is how many times interest compounds per year, and t is how many years you invest.

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: November 5, 2025

Advertising & Editorial Disclosure

How to Use MoneyGeek’s Investment Calculator

Start by entering 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're starting with — all future gains build from this base.
2
Enter your contribution amount
Add regular contributions to your investment. Monthly or annual additions grow your balance and expand total returns over time.
3
Choose your contribution frequency
Monthly contributions compound more often, accelerating growth. Annual contributions compound less frequently but still add long-term value. Pick a frequency that matches your budget and investment strategy.
4
Define your investment period
Longer time frames let compound interest work through more cycles. Extended investments achieve greater growth through repeated compounding.
5
Input an estimated rate of return
Use average return rates for your investment type: 7% to 10% for stocks, lower for bonds. This benchmark reflects annual growth based on asset type and market trends, aligned with historical performance.
6
Select a compound frequency
Monthly compounding applies interest more often, boosting your balance efficiently over time. This frequency enhances results for larger or longer-term investments.

How to Read the Results

MoneyGeek's investment calculator shows Total Balance, Total Principal and Total Interest. Total Balance is your investment's overall value. Total Principal is the amount you've contributed. Total Interest is what you've earned. You can see 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. 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 $5,000 and adding $200 each month with an estimated 6% annual return compounded monthly over 10 years, you'll see how regular contributions and compounding work together to build your investment.

After 10 years, you'd have 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 accelerate growth over time. Adjusting your time frame or monthly contributions increases returns.

Why Use an Investment Calculator?

MoneyGeek's investment calculator estimates potential returns, explores different contribution strategies and plans for long-term financial growth.

Predict investment returns

Estimate how much your investment will grow over time based on your starting amount and regular contributions. Realistic expectations help 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. Test different scenarios, like adjusting your monthly contributions or expected return, to match 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, accelerate long-term growth.

Compare different investment scenarios

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

Types of Investments

The calculator projects growth for stocks, bonds, real estate and commodities. Each type has unique potential returns and risks.

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 are volatile, with the S&P 500 Index averaging an annual return of almost 10% over the long term.	Start with your initial amount and add a monthly contribution. Use a 9–10% return rate as a benchmark. Adjust the rate to test scenarios with different contribution amounts and time frames.
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 by fund focus. Equity funds can align with the S&P 500, while bond funds average closer to 5%.	Add your initial investment and monthly contributions with a rate specific to your fund type. Test different contribution levels to see potential growth.
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.	Choose your initial deposit and regular contribution amount. Use a rate around 5% to see how steady bond interest compounds 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 property investment and any planned contributions. Use an estimated 8–12% growth rate to project long-term property value growth 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 averaged an annual return of around 10% since the 1970s, though commodity prices are volatile.	Set your initial investment and expected return range. The calculator models value changes based on price fluctuations over time.

Investment Growth vs. Investment Return

Investment growth and return measure different aspects of performance.

Investment growth tracks your total balance over time: initial deposit, regular contributions, compounded interest and reinvested earnings like dividends. This shows your portfolio's cumulative value.

Investment return measures the percentage gained relative to your initial deposit. This rate focuses on income generated from your starting capital, including dividends, without counting additional contributions.

SAMPLE SCENARIO: GROWTH VS. RETURN

Start with $10,000 and add $500 each month at a 5% annual return compounded monthly over 10 years.

Investment growth: After 10 years, your balance reaches around $94,111. This includes your initial $10,000 deposit, all monthly contributions ($60,000 total) and $24,111 in compounded interest.

Investment return: Your initial $10,000 deposit earns around $500 in the first year, a 5% return. This measures only what your starting capital generates, not the monthly contributions. Growth tracks your total balance. Return tracks performance of your initial capital.

Investment Calculator FAQ

Find answers about 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 your investment's future value. A is your ending balance, P is your initial investment, r is the annual interest rate (as a decimal), n is how many times interest compounds per year, and t is how many years you invest.

How accurate are investment calculators?

Investment calculators offer estimates based on the information you enter, but actual returns vary with market fluctuations and economic conditions. The projections don't account for inflation, fees or taxes. Use them to set expectations and compare scenarios, not as guarantees of future performance.

What return rate should I use in the calculator?

The return rate depends on your investment type. 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?

To calculate return on investment (ROI), divide the net profit by the initial investment and multiply by 100 to get a percentage. For example, if you earn $1,000 on a $10,000 investment, your ROI is 10%. This metric measures how well your investment generates 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 confirm your approach matches 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.

Read Full Bio »

sources

BlackRock Investment Institute. "BlackRock Asset Return Map." Accessed November 5, 2025.
National Association of Real Estate Investment Trusts. "Annual Index Values and Returns." Accessed November 5, 2025.
Official Data Foundation. "S&P 500 Returns Since 1928." Accessed November 5, 2025.
World Gold Council. "Gold Spot Prices." Accessed November 5, 2025.