Investment Return Calculator
Growing your investment
Estimate how much money you may earn from your investments over time, based on the amount of money you invest and the expected rate of return.
Total earnings
$ 3,933,277
- Contributions: $ 610,000
- Interest: $ 3,323,277
This calculator is for information purposes only and is not intended to provide investment, legal, tax or accounting advice, nor is it intended to indicate the performance, availability or applicability of any product or service. The accuracy of this and its applicability to your circumstances is not guaranteed. You may wish to consult an appropriate and qualified advisor about your unique situation. This calculator is provided by EVERFI. EVERFI is not affiliated with this site's sponsor, owner or any affiliate thereof. You should always consult with your financial planner, attorney and/or tax advisor as needed. Results and analyses are based exclusively on information provided by you and no assumptions are made as to your particular situation. Projection is hypothetical in nature and not predications or guarantees. All investments carry a degree of risk and past performance is not a guarantee of future results. Asset allocation and diversification do not ensure a profit and do not protect against loss in declining markets.
Investment return calculator
The goal of any investor is to maximize returns while minimizing any risk factors. It makes sense to track your investments and see how they grow over time. The Empower investment return calculator can help you do that. Simply enter your planned contributions, investment timeline, anticipated rate of return, and compounding frequency to get started.
The information provided on this page is for educational purposes only and isn't intended as investment advice. Empower doesn't offer specific investment recommendations or brokerage services through this tool.
Keep reading to learn more about the Empower investment calculator, how it works, and the type of investments it tracks.
How to use this investment calculator
To use the Empower investment return calculator, you must have the following information handy:
Initial contribution: The amount of your initial investment.
Recurring contributions and frequency: The amount of recurring contributions you plan to make and the frequency, such as weekly, monthly, quarterly, or annually.
Investment period: The number of years you expect to hold the investment, such as 10, 20, or 30.
Anticipated rate of return: The annual rate of return you expect to earn from this investment.
Empower's investment growth calculator uses the following standard formula for determining return on investment.
ROI = Net return (final value of investment - initial value of investment) / the cost of the initial investment * 100
How investment growth works
This investment calculator helps to estimate future returns on investments you make now. However, it's essential to understand how investment growth works and what factors impact your returns. Below is a look at the top factors impacting investment growth.
Compound earnings
Compounding allows you to grow your investments using the money you earn. With the potential of compounding, not only would your investments have the potential to grow, any earnings could also produce earnings.
For example, a $10,000 investment that compounds annually at 7% could nearly double in 10 years, even without adding more money.
How time can impact investments
The length of the investment also impacts return, especially with compound earnings. The chart below is a good visual representation of how this works.
Initial investment | Annual rate of return | Investment period | Final investment value |
$10,000 | 7% | 10 years | $19,672 |
$10,000 | 7% | 20 years | $38,697 |
$10,000 | 7% | 30 years | $76,126 |
Consistently contributing
The above example shows how much you can earn with compounding when making a lump sum investment. You can significantly increase these returns by making recurring contributions on an annual, monthly, or weekly basis.
Following the example above and calculating a $200 per month recurring contribution increases the final investment value to $54,075 after 10 years, $140,778 after 20 years, and $311,336 after 30 years.
Types of investments
Let's take a look at the most common types of investments investors keep in their portfolios.
CDs: CDs, or certificates of deposit, come with minimal risks but provide a lower return on your investments. These fixed-interest investments are often offered by banks and credit unions.
Bonds: These investments are loans from investors to the government or a company. Investors receive regular interest payments, and their initial investments are returned when the bond matures.
Commodities: Commodities are investments in raw goods or agricultural products, such as oil, natural gas, gold, wheat, or livestock.
Exchange-traded funds: These funds trade on the stock exchange, but they include various assets, such as stocks, bonds, and commodities.
Mutual funds & index funds: Mutual and index funds enable investors to pool their interests by investing in many assets. Professional fund managers often manage these funds.
Real estate: Real estate investments include the purchase of real property or real estate investment trusts, or REITs.
Stocks: Stocks are purchased and traded on the stock market and grant investors part ownership in the company.
Read more: Our investment methodology
Example Scenarios
Here are some real-world examples to show how the Empower investment growth calculator works.
If you make an initial investment of $15,000 with a 6% rate of return and consistently make recurring contributions of $500 monthly, you can realize a final value of $275,930 after 20 years.
Let's say you changed jobs and rolled your $25,000 401(k) into a new retirement account. You anticipate a 7% rate of return and make $200 contributions biweekly. Your final investment value after 30 years could average $699,162.
FAQs
What is an investment return?
An investment return is the amount of profits you earn over time compared to your initial investment.
How to calculate return on investment?
This simple calculation can help you determine the return on any investment: net return / the cost of the initial investment * 100
What rate of return should I assume?
The rate of return you can achieve varies based on the type and level of investment and the risks involved.
Learn more: Ready to Grow Your Investments?