Investment Simulator
Enter your initial investment, monthly contribution, and expected annual return to simulate your future asset value. Visualize the power of compound interest.
About Investment Simulator
The Investment Simulator is a tool that calculates your future asset value based on initial investment, monthly contributions, and expected annual return. By incorporating compound interest calculations, you can visually understand the power of long-term investing. For those aiming for FIRE (Financial Independence, Retire Early) or planning for retirement, this tool plays a crucial role in clarifying your path to wealth building. With detailed graphs and tables showing asset growth, it helps in formulating investment strategies.
How to Use
Enter Investment Parameters
Input your initial investment, monthly contribution, expected annual return, and investment period.
Run Simulation
Click the 'Run Simulation' button to start the calculation.
Review Results
Check asset growth through graphs and tables to plan your investment strategy.
User Reviews
Alex R.
Using this for retirement planning starting at 30. It's amazing to see how $500 monthly can grow into substantial wealth over 30 years. Motivated me to start investing!
Jordan S.
Pursuing FIRE and this tool helps me test different scenarios. The clear path to my goal and the visual graphs keep me motivated on my journey.
Sam T.
Planning for my children's education fund. Being able to work backwards from the target amount to determine monthly contributions is incredibly practical.
Features
Compound Interest Engine
Accurate asset projection with monthly compounding. Dollar cost averaging effects are included.
Visual Graph Display
Automatically generates growth charts for at-a-glance understanding of asset progression.
Detailed Annual Table
View principal, interest earned, and total assets for each year in detail.
Real-time Calculation
Instant recalculation when values change, making scenario comparison easy.
Mobile Responsive
Comfortable experience on smartphones with responsive design.
Frequently Asked Questions
What is compound interest?
Compound interest is when you earn interest not only on your principal but also on previously earned interest. This accelerates asset growth over time, making it particularly powerful for long-term investing.
What annual return should I use?
It varies by investment type, but long-term stock market average returns are typically 5-7%. Use 3-5% for conservative estimates, or 7-10% for more aggressive projections.
What are the benefits of dollar cost averaging?
Dollar cost averaging offers benefits like starting with small amounts, risk reduction through time diversification, easy habit formation, and significant long-term wealth building through compound effects.
Does the calculation include taxes?
This simulator shows gross amounts without tax considerations. In actual investing, remember that investment gains are typically taxed at around 20% depending on your jurisdiction.