Understanding your result
The future value applies the selected periodic rate for the full holding period. Gain is ending value minus the original amount.
To model fixed monthly investments rather than a single deposit, use the SIP Calculator and choose when contributions are made.
The formula
P is the one-time principal, r is annual return as a decimal, n is compounding periods per year, and t is years. An entered 10% becomes 0.10. Market returns do not compound at a fixed schedule.
Worked example
A one-time 10,000 amount at 10% compounded annually for three years grows to 13,310, a 33.1% total return and 1.331× value multiple.
How to use this calculator
- Enter the amount invested once at the beginning and the holding period in years.
- Enter the annual return assumption and select compounding frequency in the additional options. Use annual frequency for an effective annual growth rate.
- Compare projected value, gain or loss, total return, and the value multiple. No later deposits or withdrawals are included.
Lump sum and periodic investing
A lump sum puts the full amount to work at the beginning. A SIP or contribution plan spreads entry dates across time.
The preferable approach depends on available cash, risk, behavior, and product terms—not this formula alone.
Frequency and quoted returns
More frequent compounding raises value when a positive nominal rate is divided into periods. Investment performance is often reported as an effective return instead.
Choose annual frequency when the rate already describes annual portfolio growth.
Assumptions & limitations
What this calculation assumes
- One initial amount and no cash flows.
- Fixed nominal annual rate.
- Reinvestment with no fees or tax.
What to keep in mind
- Volatility and sequence of returns are hidden.
- Daily compounding may not match an investment product.
- A modeled return is not guaranteed.
Common questions
What does 1.5× mean?
The ending value is one and a half times the starting amount.
Is lumpsum one word?
Lumpsum is common search terminology; lump sum is standard English.
Can I model a loss?
Yes, use a negative annual return above −100%.