Project an investment balance using an initial amount, monthly contributions, an assumed annual return, and a time horizon.
Future Value
How the Investment Projection Is Calculated
The projection starts with your initial amount and adds the same contribution at the beginning of each month. It then applies one month of growth using the annual rate divided by 12. This monthly cycle repeats for the selected number of years. The summary separates the projected balance, total amounts contributed, and the modeled net growth or loss.
Assumptions to review
The model assumes a constant annual rate (including a negative rate when entered) and an unchanged monthly contribution. A rate that would make the monthly compounding factor zero or negative is rejected. It does not account for market volatility, losses, taxes, account charges, inflation, or contribution timing changes. Because contributions are added before that month's growth in this version, the result can differ from calculators that assume deposits at the end of each month.
Financial note: The result is hypothetical and is not a forecast, guarantee, or recommendation to invest.
Example and limitations
The result assumes the selected return is applied consistently over the chosen period. Real markets fluctuate, and the model does not account for investment fees, taxes, volatility, or a guaranteed rate of return.
Scope: The return rate is an assumption supplied for illustration. Investment values can rise or fall; the projection does not guarantee performance and may exclude fees, taxes, and market volatility.