Worked example
Invest $500 a month for 20 years at an assumed 7% a year and the estimated value is $261,983. You put in $120,000; the other $141,983 is assumed growth.
- Monthly investment
- $500
- Assumed return (per year)
- 7%
- Time period
- 20 years
- Amount invested
- $120,000
- Estimated returns
- $141,983
- Estimated value
- $261,983
| Year | Invested so far | Estimated returns | Estimated value |
|---|---|---|---|
| 1 | $6,000 | $232 | $6,232 |
| 2 | $12,000 | $915 | $12,915 |
| 3 | $18,000 | $2,082 | $20,082 |
| 4 | $24,000 | $3,766 | $27,766 |
| 5 | $30,000 | $6,005 | $36,005 |
| 10 | $60,000 | $27,047 | $87,047 |
| 15 | $90,000 | $69,406 | $159,406 |
| 20 | $120,000 | $141,983 | $261,983 |
How to use this calculator
- Enter how much you plan to invest every month.
- Enter the annual return you expect, and try a cautious figure as well.
- Choose how many years you will keep investing.
- Read the estimated value, the total invested and the growth.
Monthly compounding, payments at the start of each month: $500 a month at 7% for 20 years gives $261,983.
Frequently asked questions
Are the returns guaranteed?
No. Investment returns vary from year to year and the calculator assumes a constant rate, so treat the result as an estimate. A cautious case helps: at 4% instead of 7%, $500 a month for 20 years would reach about $183,999 rather than $261,983.
How much difference does time make?
A great deal, because returns compound. Over 40 years instead of 20, you invest twice as much ($240,000) but the value grows to about $1.32 million — roughly 5 times as much.
Can I use it for a savings account or a pension plan?
Yes, for any plan where you pay in a fixed amount every month and it grows at a steady rate. Choose your currency at the top of the page if you want a currency symbol.
Are taxes and charges included?
No. The result is before tax, fund charges and platform fees, which depend on your country and the product.