Project how your investment portfolio could grow with annual returns, monthly contributions, and dividend reinvestment.
How Investment Returns Are Projected
This calculator models monthly compounding with separate price appreciation and dividend reinvestment. Historical S&P 500 returns average about 10% annually (7% after inflation), with a roughly 2% dividend yield.
The S&P 500 has averaged about 10% annually since inception (roughly 7% after inflation). A balanced portfolio of 60% stocks and 40% bonds has historically returned about 8%. Conservative estimates use 6-7%, moderate use 8%, and aggressive use 10%.
Yes, reinvesting dividends significantly boosts long-term returns through compounding. A $10,000 S&P 500 investment in 1990 would be worth about $110,000 with reinvested dividends vs. $65,000 without — nearly 70% more.
These projections assume a constant return rate, which doesn't happen in reality. Actual returns vary year to year. Use this as a planning tool for general direction, not a precise prediction. Real results will fluctuate above and below the projection.
No. Investment returns are shown pre-tax. In a taxable account, you'd owe capital gains tax (15-20% for long-term) and income tax on dividends. Tax-advantaged accounts (401k, IRA, Roth IRA) can defer or eliminate these taxes.
The S&P 500 has returned an average of ~10% annually since 1926. However, individual years range from -37% (2008) to +52% (1954). Time in the market matters more than timing the market.
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