Investment Return Calculator

How to Use This Investment Calculator

This free investment calculator helps you estimate the potential growth of your investments over time, taking into account compound interest, regular contributions, management fees, and taxes on capital gains.

Understanding the Inputs

• Initial Investment (Lump Sum): The amount you start with. This could be savings you want to invest all at once.
• Monthly Contribution: Regular monthly deposits, similar to a Capital Accumulation Plan (CAP/PAC).
• Expected Annual Return: The average yearly return you expect. Historical stock market returns average around 7-10% annually.
• Management Fee (TER): Total Expense Ratio for ETFs or funds. This is typically between 0.1% and 2% annually.
• Tax Rate: Capital gains tax rate in your country. For example, Italy has a 26% tax on investment gains.
• Leverage: A multiplier applied to your returns. Use 1x for standard investing, 2x to simulate leveraged ETFs, or values below 1 (like 0.5x) to simulate reduced market exposure. Remember: leverage amplifies both gains AND losses.

Compare with Real S&P 500 Data

Enable the "Compare to Real S&P 500 Data" option to see how your investment strategy would have performed using actual historical market data from 1950 to today. This feature uses real S&P 500 daily closing prices to simulate your investment through actual market conditions, including bull markets, crashes, and recoveries.

Accumulation vs Distribution

Accumulation funds automatically reinvest dividends, maximizing compound growth. Distribution funds pay out dividends, which may be subject to immediate taxation but provide regular income.

The Power of Compound Interest

Compound interest is often called the eighth wonder of the world. By reinvesting your returns, you earn interest on your interest, leading to exponential growth over time. The longer your investment horizon, the more powerful this effect becomes.