Investment Return Calculator
Estimate how your investments will grow over time based on your initial investment, regular contributions, and assumed rate of return.
Key Metrics Explained
- Total return — The overall percentage gain or loss on an investment over a period
- CAGR (Compound Annual Growth Rate) — The smoothed annual rate of return across multiple years
- Real return — Return adjusted for inflation, showing what your gains are worth in today’s purchasing power
Historical Return Averages for Reference
These are historical averages and are not guaranteed:
- U.S. stock market (S&P 500): Approximately 10% average annual return before inflation (7% after inflation)
- Bonds: Approximately 4-5% average annual return
- Real estate: Approximately 8-12% annually depending on market and property type
- High-yield savings / CDs: Varies with the interest rate environment
Risk and Return
Higher potential returns generally come with higher volatility and risk. Diversification across asset classes can help smooth returns and reduce the impact of any single asset’s performance on your overall portfolio.
Frequently Asked Questions
What return rate should I use for planning?
Use a conservative estimate of 5-7% for long-term financial planning. This helps avoid overestimating future wealth and ensures your plan works even in below-average market conditions.
What is dollar-cost averaging?
Dollar-cost averaging is investing a fixed amount on a regular schedule regardless of market conditions. Over time, it results in buying more shares when prices are low and fewer when prices are high.