Understanding the investment calculator
Steady contributions are the quiet engine of investing. A modest monthly amount, given decades of compounding, routinely ends up worth more than a large lump sum invested late the early dollars simply have more time to double. This calculator assumes contributions at the end of each month and a constant annual return compounded monthly.
Real markets do not deliver constant returns; they average out to something like the number you enter, with big swings on the way. Use conservative estimates (long-run U.S. stock returns are often cited near 7% after inflation, with no guarantee), and treat the projection as a planning aid, not a promise.
Results are estimates for education only and are not financial advice.