Investment Calculator

Investment returns come from two sources: capital appreciation (your investments increasing in value) and income (dividends, interest, rent). This calculator models total return assuming reinvestment of all income.

Historical average annual returns by asset class:

• US Large-Cap Stocks (S&P 500): ~10% per year (7% after inflation)
• US Small-Cap Stocks: ~12% per year
• International Stocks: ~8% per year
• US Bonds: ~5% per year
• Real Estate (REITs): ~9% per year
• Savings Accounts: ~2-4% per year

Past performance does not guarantee future results. Actual returns will vary year to year.

Regular monthly contributions can dramatically increase your final balance through dollar-cost averaging. By investing a fixed amount each month regardless of market conditions, you buy more shares when prices are low and fewer when prices are high, which can reduce the impact of volatility.

Example: $10,000 invested at 8% for 20 years grows to $46,610. But adding $200/month during the same period results in $165,400 — the contributions of $48,000 generated an additional $66,790 in returns.

Return on Investment (ROI) measures the gain or loss relative to the amount invested. It's calculated as:

ROI = (Total Return / Total Contributed) × 100

An ROI of 100% means you doubled your money. An ROI of 50% means you earned half again what you invested. ROI is useful for comparing investments of different sizes and time periods, though it doesn't account for the time it took to earn the return.