Projections ≠ Promises
The calculator shows what could happen — not what will happen. Returns vary.
In Simple Words
The Investment Calculator projects how a lump-sum or recurring (DCA — dollar-cost averaging) investment could grow over time at an assumed return rate. It helps you visualize the power of compounding and compare strategies. But the return rate is an assumption you choose — real returns vary year to year and can be negative. The projection is a 'what if,' not a promise.
Why It Matters
Seeing the math of compounding motivates consistent investing — but overestimating returns leads to under-saving. Use conservative assumptions.
Key Terms
Investing all your money at once, upfront.
Investing a fixed amount at regular intervals, regardless of price.
How to Interpret It
If the calculator shows $1M after 20 years at 10%, try the same at 5% — the difference shows how sensitive the outcome is to the assumed return.
Beginner Mistakes
- Assuming the projected return rate is guaranteed.
- Using only optimistic return assumptions.
Try It Yourself
Use the Investment Calculator with a $500/month DCA over 20 years at 7%. Then try 4% — note how much less the projection is.
Key Takeaway
Projections show the power of compounding — at an assumed rate. Use conservative numbers; real returns vary.
Open the real tool to practice.
Knowledge Check
Choose an answer, then check.1. The calculator's return rate is…
2. DCA means…
Next Lesson
Three Horizons, Three Trends
Investment Trend Engine
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