Visualize the power of compound growth, in today's dollars.
Use this free investment calculator to estimate the future value of your portfolio. Enter your starting balance, recurring contributions, expected rate of return and time horizon and see how your wealth grows year by year. The calculator also subtracts fund fees, raises your contribution each year if you tell it to, shows the result in today's dollars after inflation, and compares the market projection with what the same money would earn in a high yield savings account or a 5 year CD at today's average rates. If you are investing specifically for retirement, the retirement calculator adds Social Security, withdrawal planning and a gap analysis on top of these projections.
Investment Returns
Project your portfolio growth. Results update as you type.
Ending balance at other rates of return (same contributions and fees)
The safe alternative: same contributions in a savings account or CD
Contributions and growth by year
Year by year
| Year | Contributed | Growth | Balance | In Today's Dollars |
|---|
Market Returns vs. Today's Average Savings and CD Rates
Start with $10,000, add $500 a month for 10 years, and you will have contributed $70,000. At an assumed 7% annual return the balance grows to about $107,144, so roughly $37,144 is investment growth. As of September 21, 2026, the MonitorBankRates national average high yield savings rate is 2.00% APY and the average 60 month CD pays 2.79% APY. The same contributions in a high yield savings account at that average would be worth about $78,580, and in a 5 year CD about $82,319, all of it guaranteed and FDIC insured. The market projection is $28,564 higher than the savings account, but only if the assumed return actually shows up.
| $10,000 start plus $500 a month for 10 years | Rate | Ending balance |
|---|---|---|
| Market at a conservative assumption | 4.00% | $88,779 |
| Market at the common benchmark | 7.00% | $107,144 |
| Market at the long run stock average | 10.00% | $130,346 |
| High yield savings at today's MBR average | 2.00% APY | $78,580 |
| 5 year CD at today's MBR average | 2.79% APY | $82,319 |
Savings and CD averages are recalculated every day from the rates banks and credit unions publish. The market rows are assumptions: stocks have returned about 10% a year over long periods, but individual years and even whole decades can be far above or below that. The savings and CD rows assume today's average rate holds for the full period, which it will not for a savings account; a CD locks the rate for its term.
How Investment Growth Works
The key to building wealth is the combination of regular contributions and compound returns. When your investment earns a return (interest, dividends or stock appreciation), that return gets added to your principal. In the following year you earn returns on your original money plus the returns from the previous year. Over a decade or more the growth on growth becomes the largest part of the balance.
Key Factors
- Time Horizon: The longer your money stays invested, the more powerful the compounding effect becomes. Use the scenario strip to see how the ending balance spreads out as the years increase.
- Rate of Return: The annual percentage growth of your investment. Historically the S&P 500 has returned about 10% a year on average before inflation, though it fluctuates widely from year to year. Enter a lower number for a mix that includes bonds or cash.
- Fees: The expense ratio is deducted from the return every year. A 1% fee on a 7% return leaves you 6%, and over 30 years that difference is roughly a quarter of the final balance.
- Inflation: A dollar in 20 years buys less than a dollar today. The "in today's dollars" figure divides the ending balance by cumulative inflation so you can compare it with prices you know.
- Frequency: Contributing monthly helps smooth out market volatility (dollar cost averaging) compared with a single annual contribution.
Investment Calculator Definitions
How to Use the Investment Calculator
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Enter your starting balance
Type in the amount you have invested today. If you are starting from zero, enter $0 and rely on the contribution field to show how regular saving grows over time.
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Set your contribution and how fast it grows
Enter how much you plan to add each month or year. This is where most of the long term growth comes from: consistent investing matters more than picking a perfect starting amount. If you expect raises, enter an annual contribution increase so the plan keeps pace.
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Choose a return, a fee and an inflation rate
For a diversified stock portfolio, 7% to 10% is a common benchmark before inflation. For more conservative mixes (bonds, CDs, money market) use 3% to 5%. Enter the expense ratio of the fund you plan to use and an inflation rate (2% to 3% is the long run norm) to see the result in today's dollars.
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Compare with the safe alternative
The calculator shows what the same contributions would be worth in a high yield savings account or a 5 year CD at today's MonitorBankRates average. If the gap is small for your time horizon, a guaranteed, FDIC insured return may be the better choice. If it is large and you will not need the money for a decade or more, the market projection shows what you give up by staying in cash.
Where Should You Park Your Money?
The right home for your money depends on when you will need it. Money you might need in the next year or two does not belong in the stock market; the swings are too large. Money you will not touch for a decade or more is wasted in cash. Most people need a mix:
Best for short term money (under 5 years)
- High yield savings accounts: FDIC insured, fully liquid, today's MBR average is 2.00% APY and the best accounts pay more
- Money market accounts: similar to high yield savings with check writing privileges
- CDs and CD ladders: lock in a rate (today's 60 month average is 2.79% APY), low risk, but less liquid
- Treasury bills: backed by the U.S. government, exempt from state tax
Best for long term money (10 or more years)
- Diversified stock index funds (S&P 500, total market): historically about 10% a year on average
- Target date retirement funds: automatically shift from stocks to bonds as you age
- 401(k) and IRA accounts: tax advantaged wrappers around the investments above
- Roth IRA: tax free growth and withdrawals in retirement
The general rule: short term money goes in safe, liquid accounts (compare today's savings rates to find a good one); long term money goes in diversified investments. The middle ground, money you might need in 3 to 7 years, is the trickiest. A mix of bonds, CDs and conservative stock funds usually fits best.
Frequently Asked Questions
What is a good rate of return?
For long term stock market investments, many experts use 7% to 10% as a benchmark before inflation. For safer investments like bonds or CDs, rates are typically lower; today's MonitorBankRates average high yield savings rate is 2.00% APY and the average 60 month CD pays 2.79% APY. The S&P 500 has averaged about 10% annual returns historically, though individual years have ranged from a 37% loss to a 38% gain.
Does this include inflation?
Yes. The main balance is the nominal future value, and the "in today's dollars" figure divides it by cumulative inflation at the rate you enter (2% to 3% is the long run norm). For example, $100,000 in 20 years at 2.5% inflation has the purchasing power of about $61,000 today. Set inflation to 0 to see nominal figures only.
Are investment returns guaranteed?
No. Unlike savings accounts or CDs, which carry FDIC insurance up to $250,000, investments in stocks, mutual funds and ETFs carry risk. You could lose money, and past performance does not guarantee future results. The 10% historical S&P 500 return is an average over decades; any given year can be sharply negative. That is why this calculator shows the guaranteed savings and CD alternative next to the market projection.
How much should I invest each month?
Most financial planners suggest investing 15% to 20% of your gross income for long term goals like retirement, on top of any employer 401(k) match. If that is not feasible right now, start with whatever you can; even $50 a month invested for 30 years at 8% grows to roughly $75,000.
Should I invest a lump sum or contribute monthly?
If you have cash sitting on the sidelines, research consistently shows that lump sum investing beats dollar cost averaging about two thirds of the time, because markets trend up over time. However, monthly contributions are easier psychologically and reduce the regret of investing right before a downturn. The best plan is usually whichever one you will stick with.
What is the difference between an index fund and an individual stock?
An index fund holds hundreds or thousands of companies in a single fund (an S&P 500 fund holds all 500). It diversifies away the risk of any single company failing. An individual stock is a bet on one company. For most long term investors, low cost index funds are the simpler and safer choice; about 90% of professional fund managers fail to beat the index over 15 years.
How do taxes affect my investment returns?
Returns in a regular taxable brokerage account get hit with capital gains taxes (15% to 20% federal for most people, plus state). Returns inside an IRA or 401(k) grow tax deferred, and Roth accounts grow completely tax free. The order most planners suggest: capture the full 401(k) employer match first, then max out a Roth IRA, then return to the 401(k), then use a taxable brokerage for anything beyond that.
What is a reasonable expense ratio for an index fund?
Look for index funds with expense ratios under 0.20%, ideally under 0.10%. Several major brokerages now offer total market index funds at 0.03% or even 0.00%. A 1% expense ratio sounds small but compounds to roughly 25% less wealth over 30 years compared with a 0.05% fund. Enter the fee in the calculator to see the dollar cost for your plan.
When does a savings account or CD beat investing?
When the time horizon is short or the money cannot be at risk. Over 1 to 3 years the market can easily be down, so a savings account at today's average of 2.00% APY is the sensible choice for an emergency fund or a house down payment. Over 10 years or more the expected market return usually pulls well ahead, as the safe alternative comparison above shows, and the cost of staying in cash becomes the bigger risk.
