Financial Calculators Investment Return Calculator

Investment Return Calculator

Use our investment return calculator to estimate how your investments might grow over time.

Your initial investment

$
30 years
8 %

Add a recurring investment

$
Total balance
$0
Contributions:
$0
Investment Return:
$0

The calculator applies compounding based on the contribution frequency. For the initial investment amount entered, growth is compounded annually over the investment period selected (up to 30 years). Recurring investment contributions are compounded based on the period selected (weekly, monthly, etc.). The calculator uses straight line returns and does not account for market fluctuations.

Facet is an SEC registered investment adviser. This calculator is for information purposes only and is not intended to provide investment, legal, tax or accounting advice, nor is it intended to be an investment proposal, or performance indicator. The accuracy of this projection is not guaranteed nor is it necessarily applicable to your circumstances. All calculations are for information and illustrative purposes, and based on the user’s inputs at a point in time and do not account for Facet membership fees, market fluctuations, or any other situations.This is not an offer to sell securities or the solicitation of an offer to purchase securities. All investments carry a degree of risk and past performance is not a guarantee of future results.

Why use an investment return calculator?

An investment return calculator can help you make smarter choices for your money by providing clear insights into how your money can grow over time. 

When you use an investment return calculator, you can: 

  • See potential growth: Visualize how your investments could perform over different time periods.
  • Make better decisions: Use projections based on your inputs to refine and personalize your investment strategy.
  • Plan better: Set realistic financial goals with a better understanding of potential outcomes. 
  • Test different scenarios: Compare contribution amounts, time horizons, and rates of return. 

Understand compound interest: See the potential impact of compounding interest over extended periods.

How to use our return on investment calculator

Follow these simple steps to get the most from our calculator: 

  1. Enter your initial investment amount
  2. Select your investment period 
  3. Enter your expected annual rate of return
  4. Input your recurring investment amount (if applicable)
  5. Choose the frequency of your recurring contributions
  6. View your results automatically

Once you’ve provided all the required information, the calculator will give you three numbers: 

  • Contributions: This is the total amount you’ve invested, including your initial investment and all recurring contributions. 
  • Total balance: Your total balance is the final value of your investment at the end of the selected time period. 
  • Investment return: This is the amount your investment has earned through compound growth (total balance minus contributions). 

These results help you see how your investments can grow over time and understand the potential power of compound returns. 

Understanding the return on investment calculation

Whether you’re a conservative investor who prefers less risk or an aggressive investor who’s more comfortable with risk, your return on investment shows how much your investments can grow over a set period of time. The standard formula to calculate your investment return is: 

ROI = (net return / cost of investment) x 100%

  • Net return is the final value – initial investment
  • Cost of investment is the initial amount invested

For example, let’s say you invest $10,000, and it grows to $13,000 after three years: 

  • Net Return = $13,000 – $10,000 = $3,000
  • ROI = ($3,000 / $10,000) × 100% = 30%

To understand how your investment performs on a yearly basis, you can calculate your annualized return, also known as the compound annual growth rate (CAGR).

Annual ROI = [(final value / initial investment) ^ (1 / years)] – 1

In this example:

Annual ROI = ($13,000 / $10,000) ^ (1/3)] – 1 = 9.14%

Calculating returns becomes even more complex when regular monthly contributions are involved — which is why an investment calculator is such a valuable tool.

What's considered a good return on investment?

There is no single standard for what’s considered a “good” investment return, because all types of investments are different — and all investments carry some level of risk. Instead, what you might consider a good return on investment depends on: 

  • Risk tolerance: Your comfort level with fluctuations in returns affects what you should target. Conservative investors might accept lower returns of 4-6%, while aggressive investors might target 8% or more, knowing that potential higher returns often come with more volatility and the risk of larger losses.
  • Time horizon and personal goals: Your investment timeframe also impacts reasonable return expectations. With short-term investments, you can typically expect lower returns, while longer investments offer higher returns. 
  • Market averages: The S&P has historically returned about 10% annually before inflation (about 7% after inflation). Bond markets typically yield up to 5%, while cash equivalents can offer 1-3% returns before inflation. 

Investing with Facet

We all have different levels of investment knowledge and unique financial goals — which means there’s no one-size-fits-all approach to investing. That’s why our strategies are personalized to help you make informed decisions based on your needs, comfort level with risk, long-term goals, and more. 

At Facet, our planners help members build customized portfolios primarily using low-cost, diversified ETFs. Our investment strategies are designed to support long-term growth while keeping your fees and taxes as low as possible – keeping more of your money working hard for you. Ready to build an investment strategy? Get started with Facet today.

Frequently asked questions.

Investing is when you put money into assets that are expected to increase in value or generate income over time. When you invest, you purchase assets like stocks (ownership in companies), bonds (loans to companies), or other investments with growth potential. 

Many investors also use ETFs — collections of stocks, bonds, or other assets bundled into a single investment — for their cost-effectiveness and built-in diversification.

Using an investment return calculator can help you understand how these investments might increase in value over time.

Compound returns — or compounding — is the process where your investment earnings, like interest, dividends, or capital gains, generate their own returns over time. As those earnings are reinvested, your money grows faster, creating exponential growth. An investment growth calculator can help you see how powerful the effect of compound interest can be when given enough time to work.

While traditional investment advisors often require significant minimums, today’s options have made investing more accessible than ever. What matters most isn’t your starting amount but consistency in contributing over time. Using an investment calculator shows you how even small regular contributions can grow substantially through the power of compound returns.

Common investment options include: 

  • Stocks: Buying shares of individual companies gives you partial ownership and the potential for growth through price appreciation and dividends. Stocks tend to have higher risk and higher potential returns.
  • Bonds: Bonds are loans to governments or corporations that pay you interest over time. They’re generally considered lower risk than stocks but offer lower returns.
  • Mutual funds: These are professionally managed pools of money that invest in a diversified mix of assets like stocks and bonds. They’re a good option for hands-off investors looking for built-in diversification.
  • ETFs (Exchange-Traded Funds): Like mutual funds, ETFs hold a basket of investments, but they trade like individual stocks on an exchange. They often come with lower fees and more flexibility than mutual funds.
  • Real estate: Investing in physical properties or Real Estate Investment Trusts (REITs) can generate rental income and long-term appreciation. It often requires more capital and hands-on management unless using REITs.

Cash equivalents: These low-risk, highly liquid investments include CDs, Treasury bills, and money market accounts. They offer modest returns but are useful for preserving capital and managing short-term needs.

Think about matching your investment goals to your personal goals. 

  • Short-term goals (0-3 years): Whether it’s savings for an emergency fund or money you’ll need soon, like for a vacation or home purchase, it’s best to focus on keeping your money safe. This isn’t the time for risky investments.
  • Medium-term goals (3-10 years): Saving for a more general goal or maybe a child’s education that’s a few years away? A more balanced approach that gives your money room to grow while providing some protection against market ups and downs might be a good option.
  • Long-term goals (10+ years): You can typically afford to be more growth-focused for retirement or other distant goals. The occasional market dip won’t matter as much when you have years to recover.

When you have more time on your side, you can usually take on more investment risk since you have the luxury of waiting out market downturns. Plus, the power of compound growth becomes truly significant over longer periods.