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Investment Growth Calculator: How to Project Your Portfolio

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🕑 6 min read  ·  FinCalcHub Editorial

An investment growth calculator is one of the most powerful financial planning tools available — but only if you feed it realistic inputs. This guide explains each input and how to choose numbers grounded in reality rather than optimism.

The Core Formula

Future Value = P(1+r)ⁿ + PMT × [(1+r)ⁿ − 1] / r
Where P = starting balance, r = periodic rate, n = number of periods, PMT = periodic contribution.

Starting Balance (P)

Use your current investable assets — brokerage accounts, ISAs, TFSAs, RAs. Don't include home equity or pension entitlements you can't invest; these are separate calculations. If starting from zero, P = 0 and contributions alone drive the formula.

Choosing a Realistic Return Rate

Asset ClassHistorical nominal returnConservative planning rate
Global equity index funds~9–10%/year7%
SA equity (JSE All Share)~12–14%/year nominal9% (inflation ~5%)
UK equity (FTSE All Share)~7–8%/year nominal6%
Bonds (diversified)~3–5%/year3%
60/40 portfolio (equity/bond)~7–8%/year6%

Use 7% for a mixed portfolio. Use 5% for a more conservative projection. Never plan on 12%+ unless you have a specific reason — that's the optimism trap that leaves people short.

Monthly Contribution (PMT)

Use your current contribution amount, not your aspirational one. Run two scenarios: your current contribution and what happens if you increase by $100–$200/month. The difference is often stunning.

Time Horizon (n)

Years until you need the money. For retirement: target retirement age minus current age. Be conservative — if you think you might retire at 62, model to 65. The extra cushion doesn't hurt.

Inflation Adjustment

A nominal 7% return with 3% inflation gives a real return of ~4%. For long-term planning (20+ years), always also run the real-return scenario to understand purchasing power:

Nominal rateInflationReal return$500k today worth in 20yr real terms
7%3%~4%$1.1M in real purchasing power
9%5% (SA)~4%Similar in real terms

Common Mistakes in Investment Projections

Project Your Portfolio Now

Enter your starting balance, monthly contribution, and expected return. See your balance at any future date.

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Sensitivity Analysis: Run Three Scenarios

Always model three scenarios: bear (5% return), base (7%), and bull (9%). The range between bear and bull shows you the uncertainty in financial planning. If even your bear case gives you enough to retire on, your plan is robust.

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