With the investment calculator below, you can see how big your portfolio can grow after five, 10 or 20 years. You can use this free tool to help you plan how much you need to save to meet your retirement goals.

As you enter the variables, the calculator automatically updates. You will see how the investment and interest are compounded each year. In addition, under the results you will find an explanation of the variables, as well as a basic investment concept.

Investment calculator variables

For a better understanding of the investment calculator entries, here is a breakdown …

  • Starting amount: The starting value of your investment
  • Additional contribution: The same amount you will add to your portfolio each period
  • Frequency: How often you make contributions and compound interest
  • Return rate: Your expected annual rate of return
  • Years of growth: How long you will let the investment grow

Each of these can have a significant impact on the growth of your portfolio. Feel free to change the numbers to see how it impacts your investment portfolio over time. Understanding these factors better can help you plan for retirement better.

Compound interest returns

It’s hard to grasp the power of compound interest. Albert Einstein is often attributed to the following quote …

Compound interest is the eighth wonder of the world. Whoever understands it, wins it … whoever does not understand it … pays it.

In the short term, it’s hard to see the worsening at work. But in the long run, it really adds up. This is why our investment calculator is so useful. You can see that the total return on interest increases every year by a larger amount.

Saving and investing more today means you’ll earn even more interest later. It is one of the most important concepts in finance. Now that you have a better understanding, let’s take a look at some other helpful ideas and resources.

How to improve investment calculator returns

As mentioned, increasing the amount you save and invest has a huge impact. You can see it easily with this investment calculator. And on the savings side, it’s pretty simple. The goal is to keep more of your income than you spend. And on the investment side, it’s a bit more difficult.

Average investor returns barely keep pace with inflation. Inflation has hovered around 2% in recent history. Although stocks and major investors have returned over 8% per year. This large gap is largely due to a poor understanding of how markets work.

This is why Investment U has brought together some of the greatest minds in the investment world. To get their feedback, you can sign up for our free email newsletter below. Our experts share a wide range of investment advice and ideas. You’ll find ideas ranging from upcoming IPOs to electric vehicle stocks and more.

Whether you sign up for free or not, we hope you find our investment calculator useful. Also, if you have found it useful, please share it with your friends and family.