Project a balance from an optional starting amount and a regular contribution at a fixed annual return, then see the same total invested at the start.
This is an estimate, not investment advice. See the disclaimer.
How this is calculated
Formula
Each year is split into monthly, quarterly, or yearly periods. The annual return is turned into a periodic rate by compounding, not by dividing: 6% a year becomes (1.06)^(1/12) − 1, about 0.4868% a month, not 6% ÷ 12 = 0.5%. Twelve months at that rate give exactly 6% for the year. Each period the balance grows by that factor, then the fee is taken off. A contribution can rise once a year.
Periodic growth factor = (1 + annual return / 100) ^ (1 / periods per year)
Periodic fee factor = (1 - annual fee / 100) ^ (1 / periods per year)
End of period adds the contribution after growth and the fee
Start of period adds the contribution before growth and the fee
Lump sum invests the total contributed at the start, then applies the same growth and fee with no further deposits
Assumptions
The projection uses the rates you type. It does not use a price history.
Constant return
The annual return stays fixed for the whole term. The calculator does not take a series of market prices.
Fee
The annual fee is applied every period after growth. With no growth, a year of fees leaves exactly (1 - fee) of the balance.
Contribution increase
After each year the contribution is multiplied by (1 + increase). The year row shows the amount used during that year, before the increase.
Timing
End of period adds the contribution after growth and the fee. Start of period adds it before, so the new money earns a return in the period it is paid.
Lump sum
The lump-sum balance starts at the total contributed, including any starting amount and every raised contribution, and then only grows and pays the fee. No further cash is added.
Currency
The selected code formats the figures. The maths does not convert currencies.
Worked example
Contribute 500 a month for 10 years at a 6% annual return, paid at the end of each period, with no fee and no starting amount. Each month grows by (1.06)^(1/12). The balance is 81,236.72 from 60,000 contributed. If the 6% were simply divided by 12, the balance would be about 81,939.67, so check which convention another calculator uses before you compare. If the same 60,000 were invested in full at the start and left for 10 years at a constant 6%, it would finish at 107,450.86. The gap comes from the extra time invested under a constant positive return. It is not a forecast for real markets.
Common questions
Does dollar-cost averaging beat a lump sum?
Not always, and not never. This calculator uses a constant return. With a positive return, the lump sum always finishes higher, because all of the money is invested for the whole term. With a zero return and no fee the two finish level, and with a negative return the regular contributions finish higher. Real returns vary from year to year, so either approach can finish ahead depending on the path of prices. The comparison also assumes the whole total is available on day one; many people invest regularly because the money comes from income.
How is the annual fee applied?
The annual fee becomes a per-period factor, (1 - annual fee) raised to 1 divided by the number of periods in a year. Each period the balance grows first, then the fee comes off that grown balance. A year of fees with no growth leaves exactly (1 - fee) of the balance.
What do the start and the end of a period mean?
Start of period adds the contribution before growth and the fee, so the new money is invested during the period it is paid. End of period adds it after growth and the fee, so it waits until later periods. With a positive return and no fee, paying at the start finishes higher.