Enter Investment Details
Projection Summary
Future Value: -
Principal Growth: -
Contribution Growth: -
Interest Earned: -
Growth Chart
Overview & Methodology
This calculator projects the future value of an investment by applying compound interest and including regular contributions. The formula used is:
$$ FV = P\left(1+\frac{r}{n}\right)^{nt} + \text{PMT} \times \frac{\left(1+\frac{r}{n}\right)^{nt} - 1}{\frac{r}{n}} $$
where:
- P is the initial principal
- r is the annual interest rate (in decimal form)
- n is the number of compounding periods per year
- t is the investment duration (years)
- PMT is the periodic contribution
The calculator then breaks down how much of the future value comes from the growth of the initial investment versus your regular contributions (and the interest earned on them).
Example
For example, if you invest €1,000 initially, contribute €100 monthly, expect a 6% annual return compounded monthly over 20 years, the calculator will estimate your future value and show how much is contributed vs. earned in interest.
Frequently Asked Questions
What does compounding frequency mean?
It is the number of times the investment grows per year. For example, monthly compounding means the interest is added 12 times per year.
How are contributions handled?
Regular contributions (such as monthly deposits) are added to the account and grow at the same compound rate, using an annuity formula.
What is the interest earned?
The interest earned is the difference between the total future value and the sum of your contributions (initial plus periodic).