Investment Calculator

An investment calculator is a tool that estimates the future value of an investment by projecting its growth over time, based on variables like initial deposit, ongoing contributions, investment duration, and expected rate of return.

It shows potential returns, how much you need to invest to reach a goal, and illustrating the effects of compounding. With this information, you can plan your finances and investments better. 

The calculator uses your inputs: target amount, initial investment, deposit frequency, deposit amount, interest rate, and years of growth to calculate the how your money grows.

Yes. The calculator compounds your returns automatically, showing how your investments can grow as your returns generate additional returns over time.

No. The calculator provides estimates based on your inputs. Actual returns can vary due to market volatility, fees, and economic conditions.

Absolutely. By adjusting your contributions, time horizon, and expected returns, you can project how much you might accumulate for retirement.

Inflation reduces future purchasing power, and fees can lower net returns. You can adjust the return rate to reflect inflation-adjusted or fee-adjusted estimates.

Yes. Input an estimated annual return that reflects the type of investment or portfolio you’re considering.

Compounding monthly instead of annually does increase your total returns, but the difference is usually modest in the short term. Over longer periods—10 years or more—monthly compounding can produce noticeably higher growth because interest is added more frequently. The higher the interest rate and the longer the time horizon, the bigger the difference becomes.

Choose a rate that reflects the type of investment you’re modelling. For example, cash accounts like StashAway Simple™ have modest rates, while diversified portfolios or ETFs may offer higher long-term returns.  

Saving and investing both play essential roles in financial planning, but they serve different purposes.

Saving involves setting aside money in low-risk accounts, ensuring easy access when needed. It’s ideal for short-term goals like building an emergency fund, planning for a major purchase, or simply keeping money safe. However, the returns on savings accounts are generally low and may not keep up with inflation.

Investing, on the other hand, involves putting your money into assets like stocks, bonds, or real estate with the expectation of higher returns. It carries more risk but offers the potential for greater wealth accumulation over time. Investing is best suited for long-term financial goals such as retirement or funding your child’s education.

The choice between saving and investing depends on your financial goals, risk tolerance, and time horizon. A balanced approach—keeping enough savings for short-term needs while investing for long-term growth—can help you build lasting financial security.

Investing doesn’t have to start with a large sum. By consistently investing just $100 per month, you can harness the power of compound interest and potentially build significant wealth over time. The key lies in patience, consistency, and choosing the right investment strategy.

The power of compounding interest

Compounding is when your investment earns returns, and those returns generate even more returns. The longer your money stays invested, the more powerful this effect becomes. In the early years, most of the growth comes from your contributions, but over time, your earnings start multiplying exponentially.

For example, if you invest an initial RM10,000 with a RM500 monthly investment for 30 years at a 6% annual return, your RM190,000 total investment could grow to nearly RM531,784—almost three times your contributions!

Now, let’s explore two key factors that influence growth: the rate of return and the duration of your investment.

Scenario 1: Different rates of return

Starting with an initial deposit of $10,000 and investing $500 per month, here’s how your investment could grow under different return scenarios over 30 years:

A higher return accelerates growth, showing why many long-term investors turn to stocks and ETFs for wealth-building.

Scenario 2: Investing time frame

Time is your best friend when it comes to investing. Let’s see how extending your investment period makes a difference, assuming a 6% annual return:

The longer you invest, the greater your wealth grows. Even small contributions add up when you let compound interest work over decades.