What return should I assume?

Long-run US stock market averages are 7–10%; bonds historically 3–5%. Use your portfolio's blend.

Does this include inflation?

No — returns are nominal. Subtract ~3% for a real return estimate.

Long-run US stock market averages are 7–10%; bonds historically 3–5%. Use your portfolio's blend.

No — returns are nominal. Subtract ~3% for a real return estimate.

Investment

Project the growth of an investment with regular contributions.

Initial Investment

Monthly Contribution

Expected Annual Return

Investment Period

$$FV \;=\; P\!\left(1+\tfrac{r}{12}\right)^{\!12y} + C\cdot\frac{\left(1+\tfrac{r}{12}\right)^{\!12y}-1}{r/12}$$

Where

rrequired return

FVfuture value

PVpresent value

tyears

Pstarting principal

Cmonthly contribution

yyears