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Investment Growth Calculator

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Investment Growth Calculator

Model your long-term wealth growth under three economic scenarios. Customize compounding schedules and regular deposits to see the compound interest effect in action.

S&P 500 Index (20 Years)
High-Yield Savings (5 Years)
Aggressive Growth (15 Years)
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Moderate Scenario Future Value
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Enter parameters on the left to estimate compound growth.

*Scenario comparisons include ±2% variance from target return rate.
Scenario Comparison Summary
Conservative Scenario (—): —
Moderate Target Scenario (—): —
Aggressive Scenario (—): —
Total Principal Invested: —
Growth Timeline Projection
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Understanding Investment Growth & Compounding Schedules

The Investment Growth Calculator models how capital expands under variable rates and compounding schedules. Unlike simple interest where gains remain flat, compounding interest applies the rate of return to both your initial principal and all accumulated returns from previous periods.

The Impact of Compounding Frequencies

The frequency at which interest is calculated and added back into the balance alters the final yield. Compounding monthly yields higher returns than compounding annually, while compounding daily yields the highest overall terminal value.

The Mathematical Formulas

For an initial lump sum compounded k times per year:

FV = P × ( 1 + r / k )k × n

With periodic regular contributions (deposits) made at the end of each period, the compound annuity formula applies:

FVannuity = PMT × [ ( 1 + r / k )k × n – 1 ] / ( r / k )

Where:

  • P = Starting capital lump sum.
  • PMT = Contribution amount deposited each period.
  • r = Expected annual growth rate (decimal).
  • k = Compounding frequency per year (Daily = 365, Monthly = 12, Quarterly = 4, Annually = 1).
  • n = Duration in years.