Recurring Investment Calculator
Project the future value of any recurring monthly investment given the contribution, expected annual return and time horizon.
Written by Rahman · Last reviewed
Quick answer
Investing $200 every month for 20 years at 10% grows to about $153,000, and only $48,000 of that is your own money, with the other $105,000 coming from growth. Each contribution compounds for a different length of time, so the earliest ones do a disproportionate share of the work. That is why the date you start matters more than the amount you start with.
- Amount invested900,000.00 (35.7%)
- Estimated returns1,622,880.00 (64.3%)
- Total2,522,880.00
Results are estimates for general guidance and are not financial, tax or legal advice. Except where a calculator names a currency, figures carry no currency of their own: put in pounds and you get pounds back, put in rupees and you get rupees. Figures depend on the assumptions you enter and on rates that change over time. Check current rates and speak to a qualified adviser before acting on them.
About the Recurring Investment Calculator
A recurring investment plan (sometimes called dollar-cost averaging or a regular savings plan) means putting a fixed amount into an investment every month, regardless of market conditions. Because you buy more units when prices are low and fewer when prices are high, your average cost smooths out over time.
This calculator projects the future value of your monthly contributions based on an expected annual rate of return and your investment horizon, and shows how much of the final value is your own money versus compounding growth.
FV = M × [((1 + i)^n − 1) / i] × (1 + i)
M is the monthly contribution, i is the monthly rate of return (annual rate ÷ 12 ÷ 100), and n is the total number of monthly payments.
Suppose you invest $200 every month for 20 years at an expected 10% annual return. The calculator projects a final value of about $153,000, built on just $48,000 of your own contributions. The other $105,000 comes from compounding growth on every contribution that came before. Extend the plan another 10 years (still $200/month, same return) and the final value jumps to about $456,000 from $72,000 invested. Time in the market matters far more than the amount per month.
What regular investing does and does not protect against
Investing a fixed amount at regular intervals buys more units when prices are low and fewer when they are high, which lowers the average cost per unit relative to the average price over the period. That effect is real, and it is the main mechanical argument for the approach.
What it does not do is reduce exposure to the market's direction. A portfolio built through steady contributions is still fully exposed once invested, and a prolonged decline reduces it just as it would any other holding. The benefit is in smoothing the entry price and in removing the need to time it, not in protecting the balance.
- Studies of historical data generally find that investing a lump sum immediately outperforms spreading it out, simply because markets rise more often than they fall.
- The stronger case for regular investing is behavioural and practical: it matches how salaries arrive, and it removes the decision to act from a moment of market anxiety.
- Consistency matters more than the amount. Pausing contributions during a downturn forfeits the units bought most cheaply.
The projection assumes things markets do not deliver
A constant annual return is a modelling convenience, not a description of how returns arrive. Real markets deliver long flat stretches, sharp falls and rapid recoveries, and the smooth curve above is the average of a path that will not look like it.
Two further assumptions are worth making explicit. The projection is in nominal terms, so inflation is not deducted: at 2.5% a year, purchasing power roughly halves over 28 years. And it assumes every contribution is made on schedule for the full period.
- Subtract fees from the return you enter. A 1% annual charge on a 7% return leaves 6%, and over decades that gap compounds into a large share of the final balance.
- Tax treatment depends on the account. Returns inside a tax-sheltered account compound differently from returns in a taxable one.
- Run the projection at a lower return as well as your central estimate. The difference between 5% and 8% over thirty years is far larger than most people expect.
How duration and return rate change your outcome
| Monthly amount | Annual return | Duration | Total invested | Final value |
|---|---|---|---|---|
| $200 | 10% | 10 years | $24,000 | $41,000 |
| $200 | 10% | 20 years | $48,000 | $153,000 |
| $200 | 10% | 30 years | $72,000 | $456,000 |
| $500 | 10% | 20 years | $120,000 | $383,000 |
| $500 | 7% | 20 years | $120,000 | $262,000 |
Doubling the duration multiplies the result roughly 3×, while doubling the contribution only multiplies it 2×. Starting early beats contributing more.
Frequently Asked Questions
What is dollar-cost averaging?
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Because you invest a fixed amount every month, you automatically buy more shares or units when prices are low and fewer when prices are high. Over time this averages your cost and reduces the risk of investing a large sum right before a downturn.
Are projected returns guaranteed?
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No. The expected return you enter is an assumption based on historical averages, not a promise. Actual results will vary with market performance.
Can I change my contribution amount later?
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Yes. Most brokerage accounts and savings plans let you increase, decrease, pause or stop contributions at any time. Increasing contributions gradually over time can significantly boost the final value.
Does a longer investment horizon always help?
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Yes. A longer horizon gives compounding more time to work and smooths out short-term market volatility. The final years of a long plan contribute disproportionately to the total.
What happens if I miss a month?
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Missing one month has a small long-term impact: the lost contribution plus the compounding it would have generated. The bigger risk is abandoning the plan entirely; re-starting the next month keeps the strategy on track.
Is regular investing safer than putting in a lump sum?
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Regular investing spreads your entry points, so it tends to be less stressful in volatile markets. A lump sum can outperform in a steadily rising market but is fully exposed to a short-term drop on day one.
What return rate should I assume?
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For a broad US or global equity index fund, a long-term average of 7–10% (after inflation) is a common planning assumption. For bonds or balanced funds, 4–6%. Always use a conservative estimate to avoid over-projecting.