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Investment Return Calculator

Model how stocks, ETFs, and index funds grow over time. Enter a lump sum, monthly contributions, or both — and see your portfolio value, CAGR, and year-by-year schedule.

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An investment return calculator projects how a portfolio grows over time based on initial investment, ongoing contributions, and expected annual return. The S&P 500 has averaged approximately 10% annually since 1926 (about 7% after inflation). CAGR (Compound Annual Growth Rate) is the single most useful metric for comparing investments: CAGR = (Ending Value ÷ Beginning Value)^(1÷years) − 1.

Last updated: 2026-05-04
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Investment Details
$

Starting lump sum — can be $0 if starting from scratch

%

S&P 500 avg: ~10% nominal, ~7% real

yrs
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Regular Contributions optional
$
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Tax Consideration optional
%

Long-term rate is 0%, 15%, or 20% depending on income. Leave blank for tax-deferred accounts (401k, IRA).

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Investment Results
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Enter an initial investment or
monthly contribution to begin.

Investment Returns — FAQs

Common questions about modeling investment growth and returns.

The S&P 500 has averaged approximately 10% annually (about 7% after inflation) over the long term. A diversified equity portfolio typically targets 7–10% nominal, 4–7% real. Conservative portfolios (bonds + equities) target 4–6%. Individual stock picking, real estate, and other assets vary widely. For long-term financial planning, most advisors use 6–8% as a conservative assumption for diversified portfolios. Model your retirement contributions at various rates with our Retirement Calculator.

CAGR (Compound Annual Growth Rate) is the rate at which an investment would have grown if it grew at a perfectly steady annual rate — smoothing out volatile year-to-year returns into a single representative number. Formula: CAGR = (Ending Value / Beginning Value)^(1/years) − 1. It's the most useful metric for comparing investments over different time periods and for understanding your true annualized return. This calculator displays your CAGR automatically.

At the S&P 500's historical average of 10% annually: $10,000 invested grows to ~$25,937 in 10 years, ~$67,275 in 20 years, and ~$174,494 in 30 years. With $500/month in additional contributions at the same rate, the 30-year total exceeds $1.1 million. Past performance doesn't guarantee future results — use this calculator to model different scenarios and understand how contributions dramatically compound over time.

Dollar-cost averaging (DCA) means investing a fixed amount at regular intervals regardless of market price. When prices are low, you buy more shares; when high, fewer. Over time this reduces the impact of volatility and removes pressure to time the market. This calculator models DCA via the monthly contribution field. Most research shows consistent DCA produces better behavioral outcomes than lump-sum timing, even if lump-sum investing outperforms mathematically in rising markets about two-thirds of the time.

At 8% annual return over 30 years: a lump sum of ~$99,400, or ~$670/month from scratch, or a combination. At 10%: ~$57,300 lump sum or ~$442/month. The earlier you start, the less you need to invest. Someone who invests $200/month starting at 22 will accumulate more than someone investing $500/month starting at 35 — because of compounding. Use the scenario comparison in this calculator to find your personal path to any target.

Both calculators model growth over time, but they're optimized for different use cases. The Compound Interest Calculator focuses on the mathematics of compounding — APY, compounding frequency (daily/monthly/quarterly), and inflation adjustment. This Investment Return Calculator focuses on portfolio growth — with a scenario comparison at multiple return rates, capital gains tax modeling, CAGR, and milestones tailored to equity investing. Use compound interest for savings accounts and bonds; use this for stock/ETF portfolios.

The answer depends on whether you expect to be in a higher or lower tax bracket in retirement. Roth IRA: pay taxes now, withdrawals tax-free — better if you expect higher taxes in retirement. Traditional 401k: deduction now, pay taxes on withdrawal — better if you expect lower taxes in retirement. Most advisors suggest maxing employer 401k match first, then Roth IRA, then additional 401k. Model both scenarios with our Retirement Calculator.

Nominal returns are the raw percentage gain on your investment. Real returns subtract inflation to show actual purchasing power growth. If your portfolio gains 10% and inflation is 3%, your real return is approximately 7%. For long-term planning, always think in real terms — $1 million in 30 years purchases significantly less than $1 million today. The S&P 500's 10% historical nominal return translates to about 7% real. Use our Compound Interest Calculator for inflation-adjusted projections.

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Disclaimer: This calculator provides estimates for educational and planning purposes only. Investment returns are not guaranteed and actual performance will vary. Past performance of any index or benchmark does not guarantee future results. This does not constitute investment advice. Consult a licensed financial advisor before making investment decisions. Tax treatment varies by account type, holding period, and individual circumstances.