Index Fund Investment Calculator — Calculate Your Long-Term Returns

Index Fund Investment Calculator

Calculate potential returns from index fund investments. Understand how compound interest, time horizon, and monthly contributions affect your investment growth.

Step 1: Investment Details

20 years

Understanding Initial Investment

Your starting capital significantly impacts long-term growth. Even small amounts can grow substantially over time thanks to compound interest. Consider investing early for maximum benefit.

Step 2: Fund Details

7%
0.10%

About Index Funds

Index funds track a specific market index, providing diversification and lower fees than actively managed funds. Historical S&P 500 returns average around 7-10% annually before inflation.

Investment Projection Results

Summary
Fund Comparison
Growth Analysis

Projected Future Value

$312,909
Total Growth: 423%
Total Contributions
$130,000
Interest Earned
$182,909
Annualized Return
7.0%
Est. Annual Income
$12,516

Index Fund Comparison

Fund Type Avg. Return Expense Ratio 10-Year Value Risk Level

Growth Projection Analysis

Compound Interest Formula

A = P(1 + r/n)nt + PMT × [(1 + r/n)nt – 1] / (r/n)

Future value (A) is calculated based on principal (P), monthly contributions (PMT), annual return (r), compounding periods (n), and time in years (t). Compound interest accelerates growth over long periods.

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