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Investment Return Calculator

Calculate investment growth with monthly contributions and compound returns.

Last updated: June 13, 2026

Calculator

$
$
%
years

Results

Portfolio Value$343,778
Total Invested$130,000
Investment Gains$213,778

+164% return

How to Use This Calculator

  1. 1Enter your initial investment amount.
  2. 2Enter monthly contribution.
  3. 3Enter expected annual return rate.
  4. 4Set the investment period.

Formula Explanation

Investment returns compound over time. This calculator projects growth assuming a fixed annual return rate, reinvested monthly.

Future Value = P(1+r)^n + C[((1+r)^n - 1)/r]

Variables:

PInitial investment
CMonthly contribution
rMonthly return rate
nNumber of months

Worked Examples

$10,000 initial, $500/month, 8% return, 20 years

  1. 1. Monthly return: 8%/12 = 0.667%
  2. 2. 240 contributions
  3. 3. Compound growth over 20 years
Result: $344,000+ portfolio ($130K invested, $214K in gains)

Why Use This Calculator

  • Project long-term investment growth.
  • See the power of monthly contributions.
  • Compare different return scenarios.
  • Plan for retirement or financial goals.
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Tips & Best Practices

  • The S&P 500 has historically returned about 10% annually (7% after inflation).
  • Diversification reduces risk without necessarily reducing returns.
  • Starting 10 years earlier can double your final portfolio due to compounding.
  • Dollar-cost averaging (fixed monthly investments) smooths out market volatility.

Common Mistakes to Avoid

❌ Using nominal returns without considering inflation.

✅ Subtract 2-3% for inflation. An 8% return is really about 5-6% in purchasing power.

❌ Expecting consistent returns every year.

✅ Markets fluctuate. An 8% average means some years +20% and others -15%. Stay invested through volatility.

Frequently Asked Questions

What is a realistic annual return?
Historically: stocks average 8-10% (S&P 500), bonds 4-6%, savings accounts 3-5%. Higher returns come with higher risk. A balanced portfolio might expect 6-8%.
How does compounding work with investments?
When you reinvest dividends and gains, they generate their own returns. $10,000 at 8% becomes $21,589 in 10 years and $46,610 in 20 years, without adding a cent.
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Disclaimer: This calculator is provided for informational and educational purposes only. Results are estimates and should not be used as a substitute for professional advice. RediCalc.com makes no guarantees regarding the accuracy, completeness, or suitability of any calculations. Always consult a qualified professional before making financial, health, construction, or other important decisions.

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