Project the growth of your investment over time with regular contributions and compound returns.
Rates as of Q2 2025 (example)
This calculator projects how an investment grows over time, starting from an initial lump sum and adding regular monthly contributions, compounded at an expected annual return rate. It helps you visualise the long-term impact of compound growth and regular investing — showing the split between what you contributed and what the market (or investment) added on top.
This calculator compounds returns monthly: each month, the current balance is multiplied by the monthly return rate, and then the monthly contribution is added — so future returns are earned on a balance that includes all prior contributions and accumulated growth.
Formula: Each month: Balance = Balance × (1 + Monthly Rate) + Monthly Contribution, where Monthly Rate = Annual Return Rate ÷ 12. Total Contributions = Initial Investment + (Monthly Contribution × Total Months). Investment Growth = Final Balance − Total Contributions.
Example: Starting with A$10,000 and contributing A$300/month at an expected 6% annual return (example rate — enter your own assumption) over 15 years, the investment would grow to about A$111,786.55. Of this, A$64,000 represents total contributions and roughly A$47,786.55 is investment growth — meaning about 43% of the final balance was generated purely by compounding. (Note: this example is for illustration purposes only — investment returns are not guaranteed and vary over time.)
Australians have access to a range of investment vehicles, each with different risk, return, tax, and access characteristics. Shares (equities) listed on the Australian Securities Exchange (ASX) have historically delivered long-run nominal returns in the range of 9-10% per year including dividends, though with significant year-to-year volatility — the return you enter here should reflect the expected net return of your specific investment, after any fees. A distinctive feature of the Australian share market is dividend imputation (franking credits): dividends paid by Australian companies often carry a tax credit representing company tax already paid, which can offset personal tax on the dividend or generate a refund for investors in lower tax brackets or self-managed superannuation funds (SMSFs). For most Australians, the most tax-effective way to invest for the long term is through superannuation, where earnings within the fund are taxed at a concessional 15% (rather than your marginal tax rate) — see our Superannuation Calculator for super-specific projections. Outside of super, investment returns are generally subject to capital gains tax (CGT) on sale (with a 50% CGT discount for assets held more than 12 months) and income tax on dividends and interest at your marginal rate. Managed funds and exchange-traded funds (ETFs) listed on the ASX provide a low-cost way to gain diversified exposure to Australian and international shares, property, and fixed income, and are widely used by Australian retail investors.
Long-run nominal returns from Australian shares (including dividends) have historically averaged roughly 9-10% per year, though with significant volatility — some years are well above this, others well below or negative. For long-term planning, many advisers use a 6-8% nominal return assumption for a diversified Australian and international share portfolio, adjusting lower for more conservative allocations that include bonds or cash. Always subtract your investment fees from the assumed return rate to get a net figure.
Compound growth means you earn returns not just on your original investment but also on all the returns already credited — so the balance grows faster as it gets larger. The longer your investment horizon, the more powerful compounding becomes. In the example above, a 15-year investment of A\$64,000 total grows to A\$111,786 — meaning roughly A\$47,786 was generated purely by compounding, without any additional contributions.
No — this calculator shows gross (pre-tax) returns. In Australia, investment returns outside of superannuation are generally subject to income tax (on dividends and interest, at your marginal rate) and capital gains tax (CGT) on the growth when you sell (with a 50% CGT discount for assets held over 12 months). After-tax returns can be significantly lower than the gross returns shown here, depending on your tax bracket and the nature of the investment returns (income vs capital growth).
Franking credits (dividend imputation) are tax credits attached to dividends paid by Australian companies that have already paid company tax (at 30%) on their earnings. When you receive a franked dividend, you include both the cash dividend and the franking credit in your taxable income, but receive a credit against your personal tax bill for the company tax already paid. For investors in lower tax brackets (or SMSFs taxed at 15%), excess franking credits can result in a tax refund — effectively boosting the after-tax return from Australian shares above the gross dividend yield.
Inside superannuation, investment earnings are taxed at a concessional 15% (or 10% on capital gains for assets held over 12 months), rather than your marginal income tax rate (which can be up to 47% including Medicare levy). This makes superannuation a highly tax-effective investment vehicle for most Australians, particularly for those in higher tax brackets. The tradeoff is that funds contributed to super are generally preserved (inaccessible) until you reach your preservation age and meet a condition of release — so super is suitable for long-term retirement savings, not for investment funds you might need before then.
Both calculators use the same underlying monthly compounding mechanics. The Investment Calculator is framed around investment growth (shares, funds, portfolios) and uses "expected annual return" terminology, while the Compound Interest Calculator is framed around savings and interest-bearing accounts. The formula and results are equivalent given the same inputs — choose whichever framing best matches your purpose.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial advice. The expected return rate used is an example only — investment returns are not guaranteed, vary significantly over time, and depend on the specific investments held, market conditions, and fees. This calculator shows gross (pre-tax) figures and does not account for inflation, tax on investment earnings, capital gains tax, or investment fees. Past performance is not a reliable indicator of future performance. Consult a qualified financial adviser before making any investment decision.