How to Use the Investment Growth Calculator

An Investment Growth Calculator helps you estimate how much your investments will grow over time based on your initial contribution, recurring deposits, annual return rate, and investment duration.

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What It Does:

This calculator estimates the future value of your investment using compound interest. It accounts for both your initial investment and monthly contributions, assuming your money grows at a steady annual return rate.

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Steps to Use:

1. Enter your initial investment (the amount you already have or will invest upfront).
2. Add your expected monthly contribution, if any.
3. Input your expected annual return rate (e.g., 7% for average stock market returns).
4. Specify how many years you plan to invest for.

Then click "Calculate Growth" and view:

• Total Contributions – how much you invested.
• Final Value – the estimated amount your investment will grow to.
• Interest Earned – the money earned from compounding.

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Example:

If you start with $5,000, contribute $200/month for 20 years, and earn 7% annually, your investment will grow significantly thanks to compounding returns.

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Investment Growth Calculator FAQ

Q1: What does the calculator assume about return rates?
A: It assumes a constant annual return rate with monthly compounding.

Q2: Is inflation considered in this calculator?
A: No. The results are nominal values and do not adjust for inflation.

Q3: Can I skip monthly contributions?
A: Yes. Enter 0 in the Monthly Contribution field if you're not planning to make recurring deposits.

Q4: How accurate are these projections?
A: The results are estimates. Real investment returns vary year to year and are not guaranteed.

Q5: Does it include fees or taxes?
A: No. It assumes tax-deferred growth and doesn’t include brokerage or management fees.