How your investments grow
Enter a starting amount, how much you add each month, an expected yearly return and how many years you will invest. The calculator compounds the growth monthly and shows the future value, how much of it is your own contributions and how much is investment growth.
Two extra lines make the estimate more realistic:
- Fees – fund expense ratios and advisory fees come out of your return every year. A difference of 1% a year can cost tens of thousands of dollars over a few decades.
- Inflation – the "today's dollars" line shows what the future balance would buy at today's prices.
Tips for long-term investing
- Start early: time is the biggest driver of compound growth.
- Use tax-advantaged accounts first, such as a 401(k) with an employer match, an IRA or an HSA.
- Keep costs low with broad index funds.
- Stay diversified and keep investing through ups and downs instead of trying to time the market.
Frequently asked questions
What return should I assume?
Over long periods, broad U.S. stock indexes have returned roughly 10% a year before inflation, with large swings from year to year. Bonds and cash have earned less. Many planners use 5% to 7% for a mixed portfolio.
How much do I need to invest each month?
Try different monthly amounts until the future value reaches your goal, or use the retirement calculator to set a target.
Are investment returns taxed?
In a regular brokerage account, dividends and gains are taxed. In 401(k)s and IRAs, taxes are deferred or, for Roth accounts, avoided.