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Investment Growth Calculator

See how your investments grow with compound interest

Understanding Investment Growth

Investment growth combines two powerful forces: compound interest on your initial investment and regular contributions over time.

Example: $10,000 initial + $500/month at 8% annual return for 20 years:

Total Contributions: $130,000
Investment Gains: $168,514
Final Value: $298,514

This demonstrates how consistent investing and compound returns can build wealth over time. For educational purposes only - actual returns vary.

The Power of Time

Scenario: Two investors contribute $500/month at 8% annual return.

Investor A: Starts at 25

Invests for 40 years
Total contributions: $240,000
At 65: $1,745,503

Investor B: Starts at 35

Invests for 30 years
Total contributions: $180,000
At 65: $745,179

Starting 10 years earlier results in $1M more, despite only $60K additional contributions. Time is a powerful factor in wealth building.

Common Return Expectations

S&P 500 Historical Average: ~10% annually
Conservative Portfolio (Bonds): 4-6% annually
Balanced Portfolio (60/40): 7-8% annually
High Savings Account: 4-5% annually

These are historical averages for educational purposes. Past performance doesn't guarantee future results. Actual returns vary significantly year to year.

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