Investment Calculator

The calculator uses compound growth: each period's returns are reinvested and earn returns themselves. With regular contributions, each deposit also starts compounding from its contribution date. The formula accounts for contribution frequency (monthly, quarterly, annually) and compounding period to give accurate projections.

Nominal returns are the raw percentage gain before accounting for inflation. Real returns subtract the inflation rate, showing actual purchasing power growth. If your investment returns 8% and inflation is 3%, your real return is approximately 5%. The calculator shows both so you can plan realistically.

Dollar-cost averaging means investing a fixed amount at regular intervals regardless of market prices. You buy more shares when prices are low and fewer when prices are high, which can reduce the average cost per share over time. The calculator models this approach through regular monthly or periodic contributions.

Historically, lump-sum investing beats dollar-cost averaging about two-thirds of the time because markets tend to go up over time. However, regular contributions reduce risk if markets drop shortly after investing. The calculator lets you model both approaches and compare outcomes.

Projections assume a constant annual return, which is unrealistic — actual market returns vary significantly year to year. A 7% average can include years of +25% and -15%. The calculator shows the expected growth trend, but real-world results will fluctuate around this line. Use it for planning estimates, not guarantees.