Investment Compounding Calculator

Inputs

Current age Target ages (comma separated)

Monthly contribution

Initial lump sum at start

Asset / scenario Fills expected return using a long term nominal scenario — not a forecast. Risk profile preset Adjusts asset and return assumptions in one click. Expected annual return (%, before inflation & tax) BTC presets are based on past performance — illustration only, not predictions. Approx tax on gains (%) For tax-sheltered accounts (RRSP, TFSA, 401k), leave at 0%. Inflation assumption (% per year) Real returns ≈ (1 + nominal) / (1 + inflation) − 1. Annual increase in contribution (%) Start year (optional)

Custom portfolio mix (optional)

Build a simple three-position portfolio. If the symbol matches a preset (SPY, QQQ, IWM, VT, VTI, VXUS, XLY, XLK, XLF, XLE, BTC, ETH), the tool uses its nominal long term return to compute a weighted average.

SymbolWeight (%)

Retirement / withdrawal phase (optional)

Enable retirement withdrawals Retirement age Withdrawal rate per year (%) Years in retirement

Contributions stop at retirement age; the tool then simulates annual withdrawals while the portfolio continues to grow.

What is CAGR?

Compound Annual Growth Rate — the average yearly return as if the investment grew at a steady rate every year, with profits reinvested.

CAGR = (Ending value / Starting value) ^ (1 / Years) − 1

Example: $1,000 → $2,000 in 5 years = CAGR of ~14.9% per year. Asset presets are simplified long term scenarios for education only.

Summary at target ages

Enter values above and click Calculate.

Growth chart

Show low / base / high range

Year by year breakdown

Age	Year	Total invested	Portfolio value	Profit	Withdrawn
No data yet.

Understanding these projections

Nominal vs real returns

Nominal returns ignore inflation. Real returns subtract rising prices. A 7% portfolio with 3% inflation is only compounding at ~4% in purchasing power terms. Using real returns keeps long term projections honest.

What return should I use?

Roughly: global stock indexes often use 6–8% nominal, balanced stock/bond mixes 4–6%, cash-like assets 1–3%. Crypto had explosive historical growth, but assumptions above 20–30% quickly lead to unrealistic long term numbers.

How much should I invest monthly?

A common rule of thumb is 10–20% of income. This tool shows the trade-off between starting small and increasing over time versus committing to a higher amount from the beginning.

Key reminders

These are projections, not guarantees.
Markets are volatile and do not move in straight lines.
Inflation, taxes, and fees can dramatically change real outcomes.
Crypto scenarios are especially uncertain — treat as experiments, not promises.

Educational use only. This calculator does not provide financial advice, recommendations, or individualized planning. Past performance does not guarantee future results. Always consider your own risk tolerance, time horizon, and tax situation before investing.