Investment Calculator
Calculate how your investments could grow over time with compound interest and regular contributions
Historical S&P 500 average: ~10% annually
Investment Tips
Start Early
Time is your greatest asset. Starting early allows compound interest to work in your favor, even with smaller contributions.
Consistent Contributions
Regular monthly contributions through dollar-cost averaging can help reduce the impact of market volatility on your investments.
Diversification
Don't put all your eggs in one basket. Diversify across different asset classes to reduce risk while maintaining growth potential.
Long-term Perspective
Markets fluctuate, but historically trend upward over long periods. Stay focused on your long-term goals and avoid emotional decisions.
How to Use the Investment Calculator
Our investment calculator helps you project how your investments could grow over time with compound interest and regular contributions. Here's how to use it:
Enter your initial investment amount
Set your expected annual return rate
Add monthly contribution amount and investment period
See your projected investment growth and scenarios
Investment Strategies for Long-term Growth
Dollar-Cost Averaging
Invest a fixed amount regularly regardless of market conditions. This strategy helps reduce the impact of market volatility and can lower your average cost per share over time.
Diversification
Spread your investments across different asset classes, sectors, and geographic regions to reduce risk. A well-diversified portfolio can help protect against market downturns.
Start Early
Time is your greatest asset when investing. Starting early allows compound interest to work in your favor, even if you can only invest small amounts initially.
Regular Rebalancing
Periodically review and adjust your portfolio to maintain your desired asset allocation. This helps ensure your investments stay aligned with your risk tolerance and goals.
Understanding Investment Returns
Historical stock market returns have averaged around 10% annually over long periods, but returns vary significantly from year to year. It's important to understand that past performance doesn't guarantee future results.
Conservative estimates often use 6-8% for long-term planning, while more aggressive projections might use 8-12%. Your actual returns will depend on your investment choices, market conditions, and timing.
Risk vs. Return
Generally, higher potential returns come with higher risk. Stocks typically offer higher long-term returns than bonds but with more volatility. Your risk tolerance should guide your investment choices.
Remember: This calculator provides estimates based on your inputs. Actual investment returns will vary and may be higher or lower than projected.
Frequently Asked Questions
What's a realistic return rate to use?
For long-term stock market investments, 7-10% is often used as a reasonable estimate. Conservative planning might use 6-7%, while more aggressive estimates could use 8-12%. Consider your risk tolerance and investment timeline when choosing a rate.
How much should I invest each month?
A common guideline is to invest 10-20% of your income, but start with what you can afford consistently. Even small amounts can grow significantly over time thanks to compound interest. The key is to start and be consistent.
Should I invest if I have debt?
Generally, pay off high-interest debt (like credit cards) before investing, as the guaranteed savings from eliminating high-interest debt often exceed potential investment returns. However, don't miss out on employer 401k matching - that's free money.
What about taxes on investment gains?
This calculator doesn't account for taxes, which can significantly impact your returns. Consider using tax-advantaged accounts like 401(k)s and IRAs when possible. Long-term capital gains are typically taxed at lower rates than ordinary income.
Disclaimer
This investment calculator is provided for informational and estimation purposes only. While we strive to keep our calculations accurate and up-to-date, laws and regulations change frequently, and individual situations can vary significantly. The results should not be considered as financial or tax advice.
NexusCalc does not guarantee the accuracy of calculations and is not responsible for any errors or omissions. Rates and rules may have changed since our last update. Please consult with a qualified professional before making financial decisions based on these calculations.
By using this investment calculator, you acknowledge that you are using the information at your own risk and that NexusCalc shall not be liable for any damages or losses resulting from your reliance on the information provided.
Last updated: November 2025