📖 Overview
Use this calculator to compare contribution strategies for long range wealth building.
⚙️ How It Works
This estimates portfolio value from current balance, recurring monthly contributions, and expected compounding return.
The Formula
FV = PV × (1+r)ⁿ + PMT × [(1+r)ⁿ − 1] ÷ r
| FV | Future portfolio value |
| PV | Current balance (present value) |
| PMT | Monthly contribution amount |
| r | Monthly return = Annual rate ÷ 12 ÷ 100 |
| n | Number of months |
💡The difference between 5% and 10% annual return over 40 years is more than 4×. Asset allocation decisions made today compound over decades.
Quick Reference
| $500/mo + $10k start | 5% annual | 7% annual | 10% annual |
|---|---|---|---|
| 10 years | $89k | $100k | $118k |
| 20 years | $221k | $285k | $402k |
| 30 years | $437k | $651k | $1.14M |
| 40 years | $791k | $1.44M | $3.19M |
Practical Tips
💡 Automate monthly contributions for consistency.
💡 Use this to compare savings rate alternatives quickly.
Frequently Asked Questions
❓ Can this model irregular deposits?
Not directly; use equivalent average monthly contribution as approximation.
❓ What if return is zero?
The projection becomes simple principal plus contributions.