How much do I need to invest each month?
Name a goal, a horizon and an assumption. The tool solves the monthly contribution that reaches it, and shows how much of the result is your money and how much is time.
Your goal
Contributions are assumed paid at the end of each month, compounded monthly, with taxes and fees left out. The return and the inflation above are your assumptions, not a forecast: up to 15% and 10%.
Required monthly contribution$749Paid at the end of each month for 20 years, to reach $371,487 on the day. Of that amount, $181,838 is growth rather than money you pay in.
Time to reach it at $500 a month26 years and 5 monthsSimulated month by month, each payment at the end of each month. It does not depend on the horizon above: it answers when the goal arrives instead of assuming it. The goal also moves as time passes, because it is stated in today's money: arriving sooner means arriving at a smaller number.
What the goal buys in today's money$250,000You stated the goal in today's money, so it was inflated to $371,487 before the contribution was solved. Solving against the un-inflated figure is the most common way a long plan comes up short.
The gap between the two lines is compounding. It widens with time, not with effort. The projection assumes one constant return, and a real sequence of returns arrives in an order no plan can choose.
Show the figures
| Year | Portfolio value | Paid in | Growth so far |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 1 | $19,827 | $18,982 | $844 |
| 2 | $30,243 | $27,965 | $2,278 |
| 3 | $41,285 | $36,947 | $4,337 |
| 4 | $52,989 | $45,930 | $7,059 |
| 5 | $65,395 | $54,912 | $10,483 |
| 6 | $78,545 | $63,895 | $14,651 |
| 7 | $92,485 | $72,877 | $19,608 |
| 8 | $107,261 | $81,860 | $25,401 |
| 9 | $122,924 | $90,842 | $32,082 |
| 10 | $139,526 | $99,824 | $39,701 |
| 11 | $157,124 | $108,807 | $48,317 |
| 12 | $175,779 | $117,789 | $57,989 |
| 13 | $195,552 | $126,772 | $68,780 |
| 14 | $216,512 | $135,754 | $80,758 |
| 15 | $238,730 | $144,737 | $93,993 |
| 16 | $262,280 | $153,719 | $108,561 |
| 17 | $287,244 | $162,702 | $124,543 |
| 18 | $313,706 | $171,684 | $142,022 |
| 19 | $341,755 | $180,666 | $161,088 |
| 20 | $371,487 | $189,649 | $181,838 |