MF Calculator

Amount invested today The lump sum already invested. Use 0 if you are starting from nothing.

Expected annual return (%)Your own nominal return assumption before fund costs. Nothing here forecasts a market.

Compounding periods a year (1/year)1 for an annually compounded return, 12 for monthly, 365 for daily.

Years invested (years)

Annual fund cost (expense ratio) (%)Deducted from the return before compounding, as a fund deducts its expense ratio.

Regular contribution

Contribution frequency

Contributions are made

Annual increase in the contribution (%)Raises the contribution once a year, for example to track a pay rise.

Years you keep contributing (years)Defaults to the whole term. Leave blank unless contributions stop early.

Regular withdrawal Money drawn out of the portfolio once the withdrawal phase starts.

Withdrawal frequency

Withdrawals start after (years)Defaults to the year contributions stop. Withdrawals cannot overlap contributions.

Inflation rate (%)Used only to restate the ending balance in today's purchasing power.

Ending balance

278,437.39

Investment Calculator

Investment growth

148,437.39

Total contributed

120,000.00

Total withdrawn

0.00

Total paid in

130,000.00

Effective annual return

6.6000 %

Money-weighted annual return

6.8149 %

Ending balance in today's money

278,437.39

Cost of fund fees over the term

14,027.65

Compounding periods

Worked out from Lump-sum compound growth, FV = P(1 + r/n)^(nt), with growth = FV - P and 2 other sources.

The return is the assumption you entered, not a forecast. Investment returns are not fixed and a portfolio can lose money.

The 0.4% fund cost is deducted from the return before compounding, so the portfolio grows at 6.6% a year.

Contributions are made 12 times a year while the return compounds 1 times a year; both schedules are run side by side.

How this is worked out

5 steps

Net return = 7% gross - 0.4% fund cost = 6.6% a year, compounded 1 times a year.
Growth factor per period = 1 + 6.6/(100 * 1) = 1.066.
Lump sum alone: 10000 * (1 + r/n)^(n*t) over 20 years.
500 paid in monthly for 20 years totals 120000.
Ending balance = 278437.39; of that, 148437.39 is investment growth on 130000 paid in.

Year-by-year balancetable

year	contributions	interest	balance
1	6,000	839.41	16,839.41
2	6,000	1,290.81	24,130.21
3	6,000	1,772	31,902.21
4	6,000	2,284.95	40,187.16
5	6,000	2,831.76	49,018.92
6	6,000	3,414.65	58,433.58
7	6,000	4,036.02	68,469.6
8	6,000	4,698.4	79,168
9	6,000	5,404.49	90,572.49
10	6,000	6,157.19	102,729.68
11	6,000	6,959.56	115,689.25
12	6,000	7,814.9	129,504.14
13	6,000	8,726.68	144,230.82
14	6,000	9,698.64	159,929.46
15	6,000	10,734.75	176,664.21
16	6,000	11,839.24	194,503.45
17	6,000	13,016.63	213,520.09
18	6,000	14,271.73	233,791.82
19	6,000	15,609.67	255,401.48
20	6,000	17,035.9	278,437.39

Results are general information, not financial, tax, legal, medical or engineering advice.