Using the Mutual Fund Calculator
Use a return assumption that is consistent with the costs you want to include. If you enter a return before fund expenses, the result is also before those expenses. Comparing several plausible returns is more informative than treating one number as certain.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Starting balance
- 10000
- Monthly contribution
- 200
- Annual nominal return (%)
- 5
- Years
- 10
Example result
- Future balance
- 47,526.55
- Total contributions
- 34,000
- Growth
- 13,526.55
Method and assumptions
Monthly compounding with end-of-month contributions and a constant nominal annual rate. Taxes, fees and market fluctuations are excluded.
Separate contributions from growth
An ending balance can grow because you put more money in, because the assumed return is higher, or because the money has more time to compound. Those are different effects. Keep the contribution schedule consistent when comparing rates, and distinguish a mathematical projection from a return that is contractually guaranteed. Fees and taxes need their own assumptions.
Common question
Does this account for dividends?
Only through the return you supply. If that assumption is a total return with dividends reinvested, the projection implicitly includes them; it does not calculate dividend payments separately.
Guide updated .