Investment Calculator: See How Your Money Grows Over Time
How much could your money grow if you keep investing and adding to it over time?
This calculator can help you estimate how much your initial investment could grow given the rate of return you’re seeking, additional investments you make, and the length of time you have to retirement.
How to Use the Investment Calculator
You can adjust any of the settings to better reflect your situation or test different scenarios.
Starting Amount
Enter the amount of money you’ll be investing initially. If you don’t have anything to invest at the moment or aren’t sure, you can put $0.
Additional Contributions
If you plan to make regular contributions to your initial investment, enter that amount here. Then select how frequently you’ll be making these additional contributions, whether it’s weekly, monthly, or annually. If you’re investing upfront and not planning on adding regular contributions, you can put $0 here.
Rate of Return
Enter the average annual rate of return you expect to earn on your investments.
The average annual rate of return you expect to earn on your investments plays a pivotal role in determining your financial growth. It reflects the anticipated profitability of your investment portfolio over time, influencing the accumulation of wealth and the achievement of your financial goals, making it a critical factor in financial planning. We’ve incorporated a baseline return of 6%, considered relatively conservative. You’re welcome to customize it to align with your personal investment portfolio expectations.
Years to Grow
Enter the number of years you will be investing this money.
This calculator can help you estimate how much your initial investment could grow given the rate of return you’re seeking, additional investments you make, and the length of time you have to retirement.
Compare Online Brokerages
The best brokers make it possible to invest in various financial products, including mutual funds, stocks, and bonds. Shop and compare online brokerages and robo-advisors to find the lowest fees and opening balances.
How Will Your Investments Grow?
While all investments are different, and there are no guarantees, the following chart illustrates the profound way your money can grow over time when you invest and reap the rewards of compound interest.
It’s Not Too Late to Adjust Your Investment Accounts
If your results fall outside your initial expectations, addressing potential shortfalls in your retirement planning is essential. This realization presents an opportunity to secure your financial future proactively. Here are some practical steps to consider:
Revise Your Budget
Review your current budget and identify areas where you can increase your savings. Adjusting your spending habits to allocate more toward retirement can help bridge the gap.
Reduce Retirement Expenses
Evaluate your retirement lifestyle and consider making adjustments to reduce your expected retirement expenses. Cutting back on non-essential expenditures can alleviate financial strain.
Meet with a Financial Advisor
Consulting with a financial advisor can provide valuable insights and tailored strategies for optimizing retirement savings. They can help you develop a comprehensive financial plan and investment strategy.
Diversify Your Investments
Consider diversifying your investment portfolio to potentially enhance returns while managing risk. A well-balanced investment approach can lead to more favorable outcomes.
Increase Income
Explore opportunities to boost your income, such as working part-time or pursuing a side business. Additional income sources can supplement your retirement savings.
Debt Management
Reducing and managing debt can free up more funds for retirement savings. Prioritize paying down high-interest debts to achieve financial flexibility.
Asset Liquidation
Evaluate the possibility of selling non-essential assets or downsizing your home to release equity directed towards retirement savings.
Educate Yourself
Take the initiative to learn more about retirement planning, investment options, and financial strategies. Knowledge is a valuable tool in securing your financial future.
These steps allow you to adapt to unexpected shortfalls and actively work toward a more financially secure retirement. Remember, there is always time to make positive changes to your financial plan and ensure a comfortable retirement.
“Even though the average life expectancy at age 65 is 19.4 years, 37.2% of survey respondents age 65 or older reported that their retirement savings would last ten years or less at their current rate of spending. This includes 19.4% who project their savings to run out in five years or less.”
Richard Barrington, Senior Financial Analyst
Now that you have a clearer picture of how your funds can be expected to grow, you may want to create a more detailed plan. That’s easier to do when you work with a financial advisor.
