Investment Return Calculator
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How Investment Growth Is Calculated
This calculator uses the compound interest formula applied monthly. Each period the balance earns interest, and regular contributions are added before the next interest calculation.
Where P = initial investment and C = contribution per period.
Historical S&P 500 Annual Returns
Past performance does not guarantee future results. Returns include reinvested dividends.
Frequently Asked Questions
What annual return should I expect from stocks?
The S&P 500 has averaged roughly 10% nominal returns per year historically. After adjusting for inflation (~3%), the real return is closer to 7%. Past performance does not guarantee future results, but 7–10% is the most commonly cited range for long-term diversified equity exposure.
What is the difference between nominal and real return?
Nominal return is the raw percentage gain before accounting for inflation. Real return subtracts inflation and shows the actual increase in purchasing power. If your investments return 8% and inflation is 3%, your real return is about 5%. This calculator shows nominal figures. Use 7% as the return rate if you want a rough inflation-adjusted estimate.
What is dollar-cost averaging?
Dollar-cost averaging means investing a fixed amount at regular intervals regardless of market price. When prices are low you buy more shares; when high you buy fewer. Over time this reduces the risk of investing a large lump sum at a market peak. The monthly contribution field models this approach.