How is compound interest calculated?

Interest is compounded monthly. The formula accounts for both initial lump sum growth and recurring contribution growth each period.

What return rate should I use?

Historical stock market averages are around 7-10% annually. Use a conservative rate (5-7%) for planning. Bond returns are typically 3-5%.

Does it account for inflation?

The calculator shows nominal returns. To estimate real purchasing power, subtract the expected inflation rate (typically 2-3%) from your return rate.

What is the difference between lump sum and SIP?

A lump sum is a one-time investment. SIP (Systematic Investment Plan) involves regular periodic contributions, which averages your purchase cost over time.

Investment Calculator

Calculate compound interest and investment growth over time. Compare lump sum vs SIP/recurring investments.

investment calculatorcompound interestsip calculatormutual fund

Disclaimer: This tool provides estimates for informational and educational purposes only. It does not constitute professional financial, medical, or legal advice. Please consult with a qualified professional before making any significant decisions based on these estimations.

Common Use Cases

comparing repayment or return scenarios
understanding the effect of changing assumptions
reviewing estimates before making a money decision

What is Investment Calculator?

The Investment Calculator models the growth of your investments over time using compound interest. Enter a lump sum, recurring monthly contributions, expected annual return rate, and investment horizon to see how your money grows. A visual chart shows your total invested amount vs. total value, illustrating the power of compound interest over long periods.

How to Use This Tool

1Enter initial investment and monthly contribution
2Set expected annual return rate and time period
3View projected growth with a visual chart

Example

Input

Initial: $10,000 | Monthly: $500 | Rate: 10% | 20yr

Output

Future Value: $445,399 | Total Invested: $130,000

Before You Rely on This Result

UtilityNest keeps tools in this category focused on transparency: short instructions, a worked example, and plain-language guidance so you can review the result before you depend on it.

Check that the inputs reflect your real situation before you rely on the estimate.
Rules, rates, health needs, and legal requirements may vary by country, state, insurer, or provider.
Use this result as a starting point, then confirm important decisions with official sources or a qualified professional.

Frequently Asked Questions

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