Free Investing Calculator Tool
ROI CALCULATOR
How To Use the Investing Calculator (Step By Step)
1. Set your starting amount
Add up the total of all your investment accounts. This may include your Roth IRA, 401(k), HSA, brokerage, or other accounts.
2. Choose your additional contributions and contribution frequency
Decide how much you can invest on a regular basis. The best way to do this is to create a budget and plan to set aside money for investing each month.
Let’s say you can invest $100 per paycheck and are paid every other week — you’d then be able to set your ‘Contribution Amount’ to $100 and ‘Contribution Frequency’ to biweekly.
3. Determine your expected rate of return
This is the average annual rate of return you expect from all of your investments. While past performance isn’t a predictor of future results, it can help indicate how much you can expect.
For example, the S&P 500 has returned 8% to 10% per year over the last 100 years — so if you plan on investing in just an S&P 500 index fund, you can input 8% under ‘Expected Rate of Return.’
4. Choose how long you want to invest
For example, if you want to see your investment growth in 20 years, enter the number 20 in ‘Years to Grow.’
5. Calculate!
The calculator will show you:
- Total Contributions: The total amount you invest over the specified timeline.
- Total Interest Earned: The total amount of interest earned over your specified timeline. Interest is compounded annually for this calculator, although some of your own investments may compound monthly.
Ready to Invest? Watch This Walkthrough:
What To Consider When Using the Investing Calculator
While it’s easy to run a few example scenarios and see how your investments might grow in the future, here are a few things to keep in mind:
Investment returns are not guaranteed
Investing involves risk, and one of those risks includes the risk of loss.
While an investment calculator may show how your investments could grow, it’s usually not the same growth each year. In fact, some years you might lose money — so make sure to account for that when planning your investment strategy.
Diversity is important
Investing in a single stock or asset is the equivalent of putting all your eggs in one basket. Instead, invest in index funds that hold hundreds (or thousands) of investments to lower your risk and diversify your portfolio.
Automation is key
A “set it and forget it” approach helps you invest regularly without even thinking about it. This helps you keep emotion out of your investment strategy and build your wealth steadily over time.