Project the future value of your investments with monthly contributions and inflation adjustment
Our Investment Return Calculator projects the future value of your investments by considering initial capital, regular monthly contributions, and an expected annual return rate. It uses the compound interest formula with monthly compounding and regular contributions to give you a realistic long-term growth projection. The calculator also adjusts for inflation to show you the purchasing power of your future returns.
Understanding the difference between nominal and inflation-adjusted returns is crucial for realistic financial planning. A 7% nominal return may only yield a 4% real return after accounting for 3% inflation. This calculator helps you see both numbers side by side so you can plan for your true purchasing power at retirement.
The S&P 500 has historically returned about 7-10% annually over long periods (after adjusting for inflation, about 4-7% real return). However, past performance does not guarantee future results. Conservative projections often use 5-7% for planning purposes.
Inflation erodes purchasing power over time. If your investments return 7% but inflation is 3%, your real return is only about 4%. This means $1 million in 20 years will buy significantly less than $1 million today. Always consider inflation-adjusted returns for long-term financial goals.