Investment Return Calculator
Calculate your investment returns with compound interest. See how your money grows over time.
Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. It's "interest on interest" and causes your investment to grow exponentially over time.
What is a good ROI for investments?
The S&P 500 has historically returned about 10% annually. A "good" ROI depends on your investment type: stocks (8-12%), bonds (4-6%), real estate (8-10%). Higher returns typically come with higher risk.
How often should investments compound?
More frequent compounding leads to higher returns. Daily compounding is best, followed by monthly, quarterly, and annually. Many savings accounts compound daily, while bonds typically compound semi-annually.
Should I include monthly contributions in my investment calculation?
Yes! Regular monthly contributions significantly boost your investment growth through dollar-cost averaging. Even small monthly additions can dramatically increase your final balance over time.