See how much your money could grow over time with our Investment Calculator. Enter your inputs and adjust assumptions to explore different scenarios.
Hypothetical illustration. Returns not guaranteed.
Potential future value
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Investment gains
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What these results mean
Key terms
Initial Investment: The amount you have ready to invest today.
Contribution: The amount you can invest moving forward.
Expected annual return: The average annual rate of return, or return on investment (ROI) you expect your investments to grow by on an annual basis.
Profit: The returns your investments may earn. Together with your initial investment and contributions, these make up your projected ending balance.
The power of compound growth
Compound growth is when your investment earnings generate their own earnings, a powerful wealth-building tool. When your investments earn returns, those returns can be reinvested and added to your total balance. In the next period, you earn returns on both your original investment and your accumulated returns. This compounding effect accelerates growth over long time horizons, though market returns are never guaranteed.
Rate of return assumptions
The expected annual return is a key assumption in this calculator. Historical stock market returns have averaged around 10% annually, while bonds average lower. A conservative estimate might be 7%, while an aggressive portfolio might assume 10% or higher.
Important note on inflation
Inflation reduces what your money can buy over time. Prices typically rise about 3% annually according to the U.S. Bureau of Labor Statistics. This means $100 today might only purchase $97 worth of goods next year.
Ways results could change1
You spend less on fast food
Even small increases in regular contributions can create wealth over time. Spending $50 less on fast food per month could make you over $42,000 in extra profit over the next 30 years.
The stock market shifts
Even a 1 percent difference to your annual rate of return can make a big impact. Assuming a $250 monthly investment, a 1 percent difference from 7% to 8% could make for an extra $63,000 profit.
You invest a bonus
Bonuses, tax refunds, or an inheritance can accelerate your growth. Even a one-time $10,000 windfall invested for 15 years can grow to an extra $17,590 in profit.
How to use this calculator
Enter your initial investment: This is how much you can invest or already have invested today.
Set your years invested: How many years until you might need this money? Longer horizons may allow more growth, though returns are not guaranteed.
Choose your contribution schedule: Decide how much you'll add regularly and how often (weekly, monthly, etc.).
Set expected return: By default we use a 7% based on historical stock market returns, but you can adjust it as you see fit.
Review the chart and table: See how your projected balance might build over time and understand the split between contributions and potential profit.
Methodology
Frequently asked questions (FAQs)
Investing vs. saving: what's the difference?
Saving often means setting money aside in low-risk accounts (savings accounts, certificate of deposits, etc.) that do grow but offer lower returns. Investing means buying assets (e.g. stocks, bonds, real estate) with higher return potential but also higher risk. We always recommend building an emergency saving fund before investing for future goals.
Is now a good time to invest?
You might be ready to invest if you already have an emergency fund of at least $1,000 and have paid off high-interest debt like credit cards. If you need help with either, Rocket Money can help via our Smart Savings and Debt Plan features. You should also evaluate whether the benefit of your employer match, if available, might outweigh potential returns in separate investment account.
What's a reasonable ROI assumption?
Historical S&P 500 returns average around 10% annually over the long term, though year-to-year results vary widely. Conservative portfolios typically use 5-6% assumptions, balanced portfolios 7-8%, and aggressive stock portfolios 9-10%. Remember that inflation usually averages ~3% annually, so subtract that from your expected return to calculate real purchasing power growth. Past performance doesn't guarantee future results.
How do I think about risk?
Risk and return are generally correlated: higher potential returns typically come with higher risk and volatility. Stocks have been more volatile but historically have offered higher long-term returns than bonds or cash, though past performance does not guarantee future results. Your risk tolerance should match your time horizon—if you need money in 2 years, lower-risk investments may be more appropriate. If you're investing for 20+ years, you may be better positioned to weather market downturns, though there are no guarantees.
What is diversification?
Diversification means spreading investments across different asset types, sectors, and geographies to reduce risk. Instead of putting all your money in one stock, you might own a mix of stocks, bonds, and real estate across many companies and countries. Certain types of investments like mutual funds or exchange-traded funds (ETFs) make diversification easy to help reduce risk.
Disclaimer: Rocket Money does not provide investment, tax, or legal advice. Consider consulting a financial professional for major financial decisions. Investment outcomes vary and returns are never guaranteed.
1: The figures and examples presented in this post are purely hypothetical and are provided for illustrative purposes only. They do not reflect real market data, actual investment results, or guarantees of future performance.
