Free Online Investment Calculator

Compound interest is calculated using the formula FV = P(1 + r/n)^(nt), where P is the principal amount, r is the annual interest rate, n is the compounding frequency per year, and t is the time in years. For monthly contributions, we calculate the future value of each contribution separately and sum them.

Compounding frequency determines how often interest is calculated and added to your principal. Monthly compounding (12 times per year) typically yields higher returns than quarterly (4 times) or annually (1 time), though the difference is usually modest. More frequent compounding means your interest earns interest more often.

Historical stock market returns average around 7-10% annually after inflation. Conservative investments like bonds might return 3-5%, while savings accounts typically offer 0.5-2%. For planning purposes, many financial advisors recommend using 6-8% for diversified portfolios. Always adjust based on your specific investment strategy and risk tolerance.

You should include both! Your initial investment (if you have one) grows through compound interest over the entire investment period. Monthly contributions represent the regular amounts you add over time. The calculator accounts for both to give you the most accurate projection of your total investment growth.

These projections assume a fixed rate of return, which doesn't reflect real-world market volatility. Actual investment returns vary year by year. Use these calculations as planning tools to understand potential outcomes under different scenarios, but remember that past performance doesn't guarantee future results. The Elyx.AI integration can help you explore multiple scenarios.

Yes! This calculator is excellent for retirement planning. Enter your current retirement savings as the initial investment, set your planned monthly contributions, choose your expected time until retirement, and use a conservative annual return rate (6-7%). The results show how your nest egg could grow, helping you determine if you're on track for your retirement goals.