Project the future value of an investment from an expected annual return, with optional monthly contributions, fund expenses and inflation.
Basic Investment Return Calculation
Portfolio Analysis with Regular Contributions
Advanced Investment Strategy Analysis
What this investment calculator does
- Basic: initial investment, expected return, years and compounding to the final value, total return, return percentage and annualised return.
- Intermediate: adds a monthly contribution and an annual expense ratio, and shows the net return after expenses.
- Advanced: adds volatility and inflation, with a year-by-year projection, real (inflation-adjusted) value, a simplified Sharpe ratio and a comparison of four example strategies.
How it is calculated
The Basic tab compounds your return at the chosen frequency. In the Intermediate tab the net return is the expected return minus the expense ratio, applied monthly, with contributions added at the end of each month. Inflation-adjusted value = projected value ÷ (1 + inflation)years.
Worked examples: $10,000 at 7% for 10 years compounded monthly grows to about $20,097, a total return of 101% or 7.23% a year. With $200 a month added and a 1% expense ratio (a 6% net return), $34,000 of contributions grows to about $50,970, a net return of 6.17% a year.
Things to keep in mind
This is a projection with a constant return. Actual investment returns vary every year, can be negative, and are not guaranteed. The Sharpe ratio uses an assumed 2% risk-free rate and the four strategies use example return and risk figures, so treat these as illustrations. Past performance does not predict future results. These results are estimates for general information only and are not financial, tax, investment or legal advice. Real products have fees, rules and rates that differ, so check the details with your lender, provider or a qualified adviser.
Frequently asked questions
What is an expense ratio?
The yearly fee a fund charges, as a percentage of your investment. It reduces your return every year.
Why show a real value?
Inflation reduces what money can buy, so the inflation-adjusted figure shows the result in today’s purchasing power.
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