Online calculator
Return Calculator
Calculate the required annual return based on initial capital, monthly contribution, investment period and desired final value.
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Formula
Final value = initial capital × (1 + r_month)^n + monthly contribution × (((1 + r_month)^n - 1) / r_month). The calculator solves this equation for the required monthly return and converts it into an annual return.
Example
Example: You want to grow €10,000 initial capital plus €250 per month over 10 years to a final value of €55,000. The required average return is about 6.42% per year.
What does the return calculator do?
It estimates the average return needed to reach a specific target amount with a given starting balance, recurring monthly savings and investment period. This helps users assess whether a savings target looks realistic.
Who is this calculator useful for?
It is especially useful for ETF investors, long-term savers, users with a defined wealth goal and anyone comparing multiple savings scenarios. It can also help put performance claims into perspective.
Why does time horizon matter so much?
A longer investment period usually increases the impact of compounding. That often lowers the required annual return for the same target amount. Short timelines typically require a much higher return.
What does the calculated return actually mean?
The result is not a promise. It is a mathematical target value. Whether such a return is realistic depends on product choice, risk, fees, taxes and market conditions.
Frequently asked questions
What is the difference between nominal and effective annual return?
Nominal annual return is the simple monthly return multiplied by twelve. Effective annual return includes compounding within the year and is therefore usually slightly higher.
Can the calculator also show negative returns?
Yes. If the target amount is below total contributions, the implied average return can be negative.
Are taxes and fees included?
No. The calculator intentionally keeps the model simple. Account fees, fund costs, taxes or inflation are not included automatically and should be considered separately.