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Investment Return Calculator

Calculate your investment returns accounting for fees and inflation.

Inputs

$
$
8.0%
025
0.50%
05
3.0%
015
10 years
140

Results

Nominal Value
$56,706.71
Gain: $22,706.71
Real Value (Inflation-Adjusted)
$42,195.12
Real gain: $8,195.12 in today's dollars
⚠
Inflation impact: $14,511.59 of your portfolio value will be eroded by inflation. Your $56,706.71 will only buy what $42,195.12 buys today.
Total Contributions
$34,000

Disclaimer: This calculator provides estimates for informational purposes only. Results are not financial advice. Consult a qualified financial advisor for decisions about your specific situation. Actual rates, terms, and conditions may vary by lender and individual circumstances.

How Does the Investment Return Calculator Work?

This calculator projects the growth of an investment over time, accounting for annual returns, management fees, inflation, and regular contributions. Unlike a simple compound interest calculator, it shows both the nominal value (the raw number on your account statement) and the real value (adjusted for inflation), giving you an honest picture of your true purchasing power growth. It also illustrates the often-underestimated impact of investment fees, which compound against you over decades and can consume a significant portion of your returns. Understanding the interplay between gross returns, fees, and inflation is essential for making informed investment decisions.

How to Use This Calculator

Enter your initial investment amount, expected annual return (use historical averages as a starting point), annual fees (expense ratios from your funds), expected inflation rate, monthly contributions, and investment timeline. The calculator shows your projected balance in both nominal and real (inflation-adjusted) terms. Compare scenarios by adjusting the fee percentage to see how seemingly small differences in fees create enormous impacts over decades.

Example Calculation

Tom invests $25,000 with $500 monthly contributions for 25 years. He is comparing two fund options: Fund A with 9% return and 0.9% fees, versus Fund B (index fund) with 8.5% return and 0.05% fees. Inflation is assumed at 3%.

  1. 1Fund A: Net return = 9% - 0.9% = 8.1%
  2. 2Fund B: Net return = 8.5% - 0.05% = 8.45%
  3. 3Fund A after 25 years: ~$606,000 nominal
  4. 4Fund B after 25 years: ~$636,000 nominal
  5. 5Difference = ~$30,000 more with Fund B
  6. 6Fund B has a lower gross return but higher net return because of much lower fees
Result: Despite a higher gross return, Fund A produces $30,000 less than Fund B because of the 0.85% fee difference compounding over 25 years. This demonstrates why low-cost index funds often outperform actively managed funds on a net basis.

Understanding Your Results

The nominal value is the raw number you would see on your account statement. The real value (inflation-adjusted) shows what that money actually buys in today's dollars. The difference between these two lines widens over time as inflation accumulates. Pay close attention to the fee impact — the calculator shows how much of your potential returns are consumed by management fees. A fund with a 1% expense ratio takes roughly 25-28% of your total returns over 30 years compared to a fund with 0.1% fees.

Tips & Best Practices

  • ✓Fees matter enormously. A 1% fee difference can cost you 25% of your portfolio over 30 years.
  • ✓Historical stock market average is roughly 10% nominal, or about 7% after inflation.
  • ✓Diversification across asset classes reduces risk without necessarily sacrificing returns.
  • ✓Do not check your portfolio daily — long-term investors who stay the course outperform frequent traders.
  • ✓Reinvest all dividends to maintain the compounding effect.
  • ✓Use dollar-cost averaging by investing a fixed amount monthly regardless of market conditions.

Frequently Asked Questions

What is a realistic annual return to expect?▾
The S&P 500 has historically returned about 10% per year before inflation (about 7% after inflation). Bond returns average 4-5%. A balanced 60/40 stock/bond portfolio typically returns 7-8%. For conservative planning, use estimates 1-2% below historical averages. Remember that actual returns vary significantly year to year — the long-term average smooths out major fluctuations.
How do fees impact my investment returns?▾
Investment fees compound against you just as returns compound for you. A fund charging 1% annually costs roughly 25-28% of your total returns over 30 years compared to a fund charging 0.1%. On a $500,000 portfolio, a 1% fee is $5,000 per year, while 0.1% is just $500. Over decades, this difference amounts to hundreds of thousands of dollars. Always favor low-cost index funds when possible.
What is the difference between nominal and real returns?▾
Nominal returns are the raw percentage gain on your investment. Real returns subtract inflation, showing the actual increase in purchasing power. If your investment grows 8% but inflation is 3%, your real return is approximately 5%. Real returns are what actually matter for long-term planning because they reflect what your money can actually buy.
Should I invest a lump sum or use dollar-cost averaging?▾
Historically, investing a lump sum outperforms dollar-cost averaging about two-thirds of the time because markets tend to go up over time. However, dollar-cost averaging reduces the risk of investing everything right before a downturn, which can be psychologically devastating. If you have a lump sum and a long time horizon, invest it all. If volatility concerns you, split it across 6-12 monthly investments.
How much should I contribute monthly to my investments?▾
A common guideline is to invest 15-20% of gross income for retirement, including any employer match. For other investment goals, use a savings goal calculator to determine the monthly amount needed. Even $200/month invested consistently at 8% grows to over $300,000 in 30 years. The most important thing is to start and be consistent.
By CalcMaven Editorial TeamLast Updated: February 2026

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Free Investment Return Calculator — After Fees | CalcMaven