Compound Growth Calculator

Project how an initial amount and regular contributions may grow with an assumed annual return, contribution frequency, compounding frequency, time horizon, and inflation rate. The calculator shows nominal future value, inflation-adjusted real value, contributions, interest earned, and effective annual rate.

How to use this calculator

Enter the initial amount, regular contribution, contribution frequency, annual interest rate, investment timeframe, compounding frequency, and expected inflation rate. For a simpler starting-balance calculation, use the compound interest calculator. For equal payment streams, compare with the future value of annuity calculator.

How it works

The calculator compounds the initial balance and adds a contribution stream scaled to the selected contribution and compounding frequencies. It then discounts the nominal result by inflation to estimate purchasing power.

$real\ value = nominal\ future\ value \div (1 + inflation\ rate) ^ years$

Example

With 10,000 dollars invested, 500 dollars contributed monthly, a 7 percent annual return, monthly compounding, 10 years, and 2 percent inflation, the nominal projection is about 106,560 dollars. The real value is lower because future dollars have less purchasing power.

Interpreting the projection

Small changes in rate, timeframe, and contribution amount can materially change long-term results. Treat the return and inflation rates as assumptions, not forecasts. If you are targeting a specific number, use the savings goal calculator to work backward from the goal.