Calculator Investment Calculator
Market presets, inflation-adjusted returns, expense ratio, and monthly contributions.
Rates shown are historical averages for reference only. Past performance does not guarantee future results. This tool is for educational purposes, not financial advice.
About this calculator
This tool projects how an investment could grow over time using compound interest, based on historical average annual returns for major market benchmarks. Enter your initial investment, ongoing monthly contributions, and time horizon, then choose a market benchmark or enter a custom rate.
The chart shows your portfolio value versus the amount you actually invested, making it easy to see how much of the final value comes from market returns versus your own contributions.
Market benchmarks explained
- S&P 500 — 500 largest US companies. Historical nominal average: ~10%/yr. Most common benchmark for long-term US equity investing.
- NASDAQ-100 — Top 100 non-financial NASDAQ stocks, heavily tech-weighted. Historical average ~13.5%/yr with higher volatility.
- MSCI World ETF — ~1,500 companies across 23 developed countries. More globally diversified. ~8%/yr historical average.
- US Total Market — Entire US stock market including small and mid caps. ~10.5%/yr historical average.
- Emerging Markets — Companies in developing economies (China, India, Brazil, etc.). Higher potential return and risk. ~7%/yr long-term average.
- Moderate 60/40 Mix — 60% stocks, 40% bonds. Classic balanced portfolio. ~7%/yr historical average with lower volatility.
- Conservative (Bonds) — US bond index. Lower risk and return. ~4.5%/yr historical average.
How compound interest works
Compound interest means your returns generate their own returns over time. A $10,000 investment at 10%/yr becomes $11,000 after one year — but in year two, you earn 10% on $11,000 (not just the original $10,000). Over decades, this compounding effect becomes the dominant driver of portfolio growth.
Adding regular monthly contributions accelerates this dramatically. Even modest monthly amounts, started early, can outperform large lump-sum investments started late.
Common uses
- Retirement savings projection with inflation adjustment
- Comparing index fund vs actively managed fund (expense ratio impact)
- Modeling monthly DCA (dollar-cost averaging) over time
- Financial independence / FIRE planning
- Estimating future value of a lump sum investment
FAQ
- What market presets are available?
- S&P 500 (~10% historical), NASDAQ (~11.5%), MSCI World (~9%), Emerging Markets (~8.5%), and conservative/balanced/aggressive bond-mix presets.
- Does it account for inflation?
- Yes — toggle inflation adjustment (default 3%/yr) to see real purchasing power of future returns.
- What is the expense ratio field?
- Annual fund management fee as a percentage (e.g. 0.03% for an index ETF). Deducted from returns each year.
- Can I model monthly contributions?
- Yes — enter a monthly deposit amount. The chart shows how regular investing compounds over time.
Market presets explained
- S&P 500 (~10%/yr) — US large-cap index, the most common long-term benchmark.
- NASDAQ-100 (~13.5%/yr) — Tech-heavy US index, higher historical return with higher volatility.
- MSCI World ETF (~8%/yr) — Global diversified index covering 23 developed markets.
- US Total Market (~10.5%/yr) — Broader US coverage including small/mid-cap.
- Emerging Markets (~7%/yr) — Higher growth potential with higher risk.
Ready to invest?
Once you know what your money could grow to, the next step is putting it to work. Wealthsimple offers commission-free stock and ETF investing with no account minimum — a good starting point for the S&P 500 and index funds modeled above.