Investment Calculator
Project your portfolio growth over time. See the power of consistent investing and compound returns.
Time in the Market Beats Timing the Market
Trying to predict market highs and lows rarely works. What does work is consistent, long-term investing. Missing just the 10 best trading days over 20 years can cut your returns in half.
💡 The Power of Starting Early
Investing $500/month from age 25 to 65 at 8% = $1.74 million
Investing $500/month from age 35 to 65 at 8% = $745,000
Starting 10 years earlier more than doubles your wealth!
Expected Returns by Asset Class
Historical returns (past performance doesn't guarantee future results):
| Asset Class | Historical Return | Risk Level |
|---|---|---|
| US Large Cap Stocks (S&P 500) | 9-11% | Medium-High |
| International Stocks | 7-9% | Medium-High |
| Bonds (Total Market) | 4-6% | Low-Medium |
| Real Estate (REITs) | 8-10% | Medium |
| 60/40 Portfolio (Stocks/Bonds) | 6-8% | Medium |
Asset Allocation by Age
A common rule: "Your age in bonds" (e.g., at 30, hold 30% bonds). More aggressive investors use "110 - age" for stock percentage.
Age 25-35
90/10
90% Stocks / 10% Bonds
Age 45-55
70/30
70% Stocks / 30% Bonds
Age 60+
50/50
50% Stocks / 50% Bonds
Frequently Asked Questions
What is a good annual return on investments?
The S&P 500 has returned ~10% annually over the long term (before inflation). After inflation, expect 6-7%. For financial planning, use conservative estimates: 6-7% for a balanced portfolio, 8-9% for an aggressive stock-heavy portfolio.
How much should I invest per month?
Aim to invest 15-20% of pre-tax income. At minimum, contribute enough to get your full employer 401(k) match (free money!). Start with what you can and increase by 1% annually until you hit your target.
Should I invest in individual stocks or index funds?
For most people, low-cost index funds are the best choice. They provide instant diversification, low fees, and historically beat most actively managed funds. Consider funds like VTI (Total Stock Market) or VOO (S&P 500).