FREE TOOLS / Investing
Investment growth
What $200 a week becomes. Time and compounding in numbers you can argue with, in today’s dollars and tomorrow’s.
Your estimate
Illustrative future balance
$273,332.84
A nominal NZD estimate after 20 years, not a guaranteed outcome. Actual returns will vary.
- Value in today’s dollars
- $183,945.17
- Additional contributions
- $120,000.00
- Investment growth / loss
- $128,332.84
View all chart values
- Year 0
- $25,000.00
- Year 1
- $32,418.00
- Year 2
- $40,216.00
- Year 3
- $48,413.00
- Year 4
- $57,030.00
- Year 5
- $66,087.00
- Year 6
- $75,608.00
- Year 7
- $85,615.00
- Year 8
- $96,135.00
- Year 9
- $107,193.00
- Year 10
- $118,816.00
- Year 11
- $131,035.00
- Year 12
- $143,878.00
- Year 13
- $157,379.00
- Year 14
- $171,570.00
- Year 15
- $186,487.00
- Year 16
- $202,168.00
- Year 17
- $218,650.00
- Year 18
- $235,976.00
- Year 19
- $254,189.00
- Year 20
- $273,333.00
What this estimate assumes
- The nominal annual return is divided by 12 and compounded monthly; contributions arrive at month end and do not increase with inflation.
- Enter a return already net of tax and fees. These deductions are not applied again. The main balance is nominal; today’s-dollar value is separately deflated annually.
- This constant-return illustration does not model market volatility. Returns are not guaranteed and losses are possible.
For information only, not financial advice. These simplified estimates do not consider your full circumstances. Assumed rates are not forecasts or guaranteed returns. Talk to a financial adviser before making financial decisions.
HOW TO READ THIS TOOL
Time does the heavy lifting. See how much.
Two ways to read the number
The headline is the future balance in nominal dollars. The value in today’s dollars sits beside it, so you can see what that balance would actually buy.
Contributions versus growth
The figures separate what you put in from what the return added, or took away. That split is the honest measure of what compounding did.
A long view
The chart shows the balance at the end of every year, so you can see how the curve steepens as the balance grows.
How the model works
The annual return is divided by twelve and compounded monthly. Contributions arrive at the end of each month and stay the same every year; they do not rise with inflation. The today’s-dollar figure deflates the end balance by the inflation rate you enter, once a year.
What it leaves out
Enter a return already net of tax and fees; the model does not deduct them again. It uses one constant return every year, so it cannot show market falls, recoveries or the order in which they happen. Returns are not guaranteed and losses are possible.
The assumptions, in full
- The nominal annual return is divided by 12 and compounded monthly; contributions arrive at month end and do not increase with inflation.
- Enter a return already net of tax and fees. These deductions are not applied again. The main balance is nominal; today’s-dollar value is separately deflated annually.
- This constant-return illustration does not model market volatility. Returns are not guaranteed and losses are possible.
A FEW GOOD QUESTIONS
Before you
trust the number.
An estimate is only as good as the question behind it. These are the ones people ask most about this tool.
All ten toolsWhy are the nominal and today’s-dollar figures so different?
Because inflation compounds too. Over twenty years at 2%, a dollar loses about a third of its buying power. The today’s-dollar figure is the one to compare against what things cost now.
Is 5% a reasonable return?
It is an example, not a recommendation. Realistic returns depend on the mix of assets, fees, tax and how long you stay invested. Try a lower figure as well as a higher one. The gap between them is the range you are actually planning inside.
Can I use this for KiwiSaver?
As a rough illustration only. KiwiSaver has employer contributions, government contributions, fund fees and tax at your prescribed investor rate, none of which are modelled here. Your provider’s projection or an adviser can show the real figures.
Does a negative return work?
Yes. Enter a negative rate to see what a sustained loss would do. Growth is shown as a negative number rather than hidden.
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