Investment Calculator
Project investment growth over time with monthly contributions, contribution escalation, and inflation-adjusted returns.
Investment details
Updates as you typeGrowth over time
Initial + contributions + returns, stackedYear-by-year schedule
| Year | Contributions | Returns | Balance | Real value | Composition |
|---|
Formula
- FV
- Future value of the investment
- PV
- Present value (initial investment)
- PMT
- Monthly contribution amount
- r
- Monthly return rate (annual rate ÷ 12)
- n
- Total number of months
- Monthly rate r = —
- Months n = —
- Growth factor (1 + r)n = —
- Future value of initial = —
- Future value of contributions = —
- Future value FV = —
Contributions are added at the start of each month and compound monthly. With escalation, the monthly amount grows by the chosen percentage at the start of each year. The real-value figures discount the nominal balance by the inflation rate so you can see what the future balance is worth in today's money.
Examples
How It Works
Contribution escalation models real-world behavior — as your income grows, you contribute more. A 3% annual escalation means if you start at $500/month, year 2 you contribute $515/month, year 3 $530.45/month, and so on. Over 20+ years, this significantly increases your total contributions and final balance.
Inflation adjustment shows what your future balance is worth in today's dollars. A portfolio worth $1,000,000 in 30 years at 3% inflation has the purchasing power of about $412,000 in today's money. This is critical for realistic planning — the nominal number is impressive but the real value is what matters for your lifestyle.
The year-by-year table breaks down each year's starting balance, contributions (escalated if applicable), investment returns, and ending balance. When inflation is included, an additional column shows the inflation-adjusted value.
Tips & Best Practices
Frequently Asked Questions
What annual return should I use?
For a diversified stock portfolio: 7-10% nominal. For a balanced stock/bond portfolio: 5-7%. For bonds only: 3-5%. These are long-term historical averages — actual returns vary significantly year to year. Use the lower end for conservative planning.
How does contribution escalation work?
Escalation increases your monthly contribution by a percentage each year. Starting at $500/month with 3% escalation: year 2 = $515, year 3 = $530.45, year 10 = $652.64. This models real-world salary growth — as you earn more, you invest more.
Why does inflation matter for investments?
Inflation erodes purchasing power. If your portfolio grows to $2M in 30 years but prices have tripled (3% inflation), that $2M only buys what $824K buys today. The inflation-adjusted column shows real purchasing power, which is what actually determines your future lifestyle.
What is the difference between this and the compound interest calculator?
This calculator adds contribution escalation (increasing contributions over time) and inflation adjustment — features specifically designed for long-term investment planning. The compound interest calculator focuses on the mathematical formula with various compounding frequencies.