Investment Return Calculator
Project Your Portfolio Growth
Understanding Investment Returns
This calculator projects your portfolio growth using compound returns with regular monthly contributions. It shows both the nominal value (raw number) and the inflation-adjusted value (what it's worth in today's dollars).
The gap between nominal and real values illustrates why simply saving cash isn't enough — you need investment returns to stay ahead of inflation and actually build wealth.
Asset Class Returns (Historical Averages)
| Asset Class | Avg Return | Risk |
|---|---|---|
| US Large Cap Stocks | 10-11% | High |
| International Stocks | 8-9% | High |
| US Bonds | 4-6% | Low-Med |
| Real Estate (REITs) | 8-10% | Medium |
| Savings Account | 4-5% | None |
Frequently Asked Questions
What is a good return on investment?
The S&P 500 has averaged ~10% annually (7% after inflation) over the past century. A 'good' return depends on risk: savings accounts (4-5%), bonds (4-6%), balanced portfolio (6-8%), stock-heavy portfolio (8-10%), individual stocks (varies wildly). Higher expected returns always come with higher risk.
What is the difference between nominal and real returns?
Nominal return is the raw percentage your investment grew. Real return adjusts for inflation. If your portfolio returned 8% and inflation was 3%, your real return was roughly 5%. Real return measures actual purchasing power growth — always use it for long-term planning.
How do fees affect investment returns?
A 1% annual fee may seem small, but over 30 years it can reduce your portfolio by 25-30%. On $100,000 invested at 8% for 30 years: 0.03% fees = $977K final value vs 1% fees = $761K. That's $216,000 lost to fees. Always minimize expense ratios.
What is dollar-cost averaging?
Dollar-cost averaging (DCA) means investing a fixed amount at regular intervals regardless of market price. When prices are low, you buy more shares. When prices are high, you buy fewer. Over time, this averages out your purchase price and removes the temptation to time the market.