Project the future value of your investment with monthly contributions, compound interest, and 3 risk profiles (conservative, moderate, aggressive). Free, with chart.

Formula

\begin{aligned}\text{Future value} &= P(1+r)^t + \mathrm{PMT} \cdot \dfrac{(1+r)^t - 1}{r} \\\text{ROI} &= \dfrac{\text{Profit}}{\text{Invested}} \cdot 100 \\\text{CAGR} &= \left(\dfrac{\text{FV}}{\text{Invested}}\right)^{1/Y} - 1\end{aligned}

What this investment calculator does

Projects how an investment grows over time given a starting amount, monthly contributions, an expected annual return, and a time horizon. Pick a risk profile (conservative 4%, moderate 8%, aggressive 12%) or enter a custom rate. The result shows: future value, total profit, ROI, and CAGR (annualized growth). A donut shows what portion of the final value is initial capital vs contributions vs compound profit. A stacked-area chart shows year-by-year growth - useful for visualizing how compound interest accelerates in later years.

How compound growth works

Compound interest means you earn returns on previous returns, not just on the principal. Each month, the balance grows by 1/12 of the annual rate. With monthly contributions, the formula is: future value = initial x (1+r)^t + PMT x [(1+r)^t - 1] / r. Over a long horizon, compound interest dominates contributions. Example: 100k SAR initial, 500/month, 8% over 30 years = ~1.1M SAR final - of which only 280k is your contributions. The other 820k is pure compound growth.

How realistic are these return rates

4% conservative: matches Saudi sukuk yields, savings account rates, and short-term bonds. Low risk, low reward. 8% moderate: matches long-term Tadawul / S&P 500 averages with a balanced portfolio. Real average for the past 30 years. 12% aggressive: high-conviction stocks, real estate, or emerging markets. Achievable in good years; volatile and can lose money in bad years. Adjust expectations: the 'real' return after 2-3% inflation is lower. Diversified ETFs and index funds are the most reliable long-term path for most retail investors.

Picking the right risk profile

Younger investors (30+ years to retirement) can usually afford aggressive profiles because they have time to recover from downturns. Mid-career (15-25 years) typically uses moderate. Near-retirement (5-10 years) shifts to conservative to preserve capital. Saudi-specific considerations: real estate has historically returned ~6-8% with steady appreciation in major cities; gold zakat-eligible accumulation is conservative-equivalent; CMA-regulated REITs offer 7-10% dividends; international ETF exposure via Saudi brokerages adds diversification. Never invest emergency-fund money; keep 3-6 months of expenses liquid.

Related calculators on HisabWeb

Compound Interest Calculator - simpler view without risk profiles. Loan Calculator - the inverse case (compound math working against you). Mortgage Calculator - long-horizon decision with similar math. Personal Finance Calculator - check your DBR before locking up money in long-term investments. Zakat Calculator - investment gains are zakatable after one lunar year.

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