How it works
What this estimate calculates
This TrueCost projection converts the entered effective annual return to an equivalent monthly rate. The initial balance and recurring contributions compound over their remaining months, and the ending value is divided into starting investment, subsequent contributions, and modeled growth.
Assumptions to keep in mind
- The annual return is a constant modeling assumption, not a prediction of market performance.
- Contributions occur regularly at the timing shown and are invested without interruption.
- Market volatility, taxes, trading costs, advisory fees, and inflation are excluded unless the tool explicitly includes them.
Reviewed references
Sources behind this calculator
Last reviewed: . These references support the concepts and context; their publishers do not review or endorse TrueCost.
- Introduction to Investing (opens in a new tab)Investor.gov, U.S. Securities and Exchange Commission
Regular contributions, compound growth, risk, fluctuating returns, and possible loss.
- How Fees and Expenses Affect Your Investment Portfolio (opens in a new tab)Investor.gov, U.S. Securities and Exchange Commission
Why omitted investment fees can materially reduce actual returns.
Questions people ask
What return should I enter?
Use a scenario that matches what you want to test, and compare more conservative and more optimistic inputs. Historical performance does not establish a future return.
Why separate contributions from growth?
The split shows how much of the projected balance comes from money added versus the assumed investment return. It also makes contribution changes easier to evaluate.
Does this account for inflation or taxes?
Only if those adjustments are explicitly entered. Otherwise, the result is a nominal, before-tax projection and future purchasing power may differ.
Use the result as a starting point
Try a conservative scenario and an optimistic one. If the decision only works under one narrow set of assumptions, that is useful information. For a purchase, loan, tax, or investment decision, confirm the final figures with current documents and an appropriately qualified professional.
Read the full financial disclaimer