What is an investment return calculator?
The investment return calculator is a tool that simulates expected asset growth for long-term investments such as stocks, ETFs, funds, and pensions. You can check how much your final assets will be when compounded by adding monthly contributions to your initial investment.
Calculation method
Invest at the beginning of each month and compound at the monthly interest rate: FV = (Initial Fund + Monthly Accumulation) × (1+r/12)^n + Subsequent Monthly Accumulation × Sum of Compound Interest. Calculated as monthly compounding based on the annual rate of return.
📊 S&P 500 Reference Yields: Based on dividend reinvestment, the historical annual average is approximately 10–111 TP3T (in USD). For Korean investors, this may be lower when reflecting exchange rates and taxes.
Refer to the yield scenario
- Conservative (5%): Bond-mixed, stable dividend stock portfolio
- Neutral (7~8%): Global Diversified ETF Portfolio
- Aggressive (10~12%): Stock-centric, long-term S&P 500 historical levels
Frequently Asked Questions
How much should I start with for monthly installment investments?
Consistency is more important than the amount. Even investing just 100,000 won per month consistently for over 10 years can build substantial assets through the power of compound interest. Enter an amount that fits your situation into this calculator to see for yourself how long it takes to reach your target assets.
Is an annual return of 81 TP 3 T realistic?
The historical long-term returns of global equity ETFs (e.g., S&P 500) are approximately 10 to 111 TP3T in dollar terms. The actual return for Korean investors may differ when considering exchange rate fluctuations and taxes. It is common to set a conservative range of 5 to 71 TP3T, or a reasonable range of 7 to 91 TP3T.
Are investment taxes (capital gains tax, dividend income tax) reflected?
This calculator calculates compound growth on a pre-tax basis. In reality, capital gains tax is levied on capital gains from stocks and ETFs, and dividend income tax (15.41 TP3T) is levied on dividends. You can defer or reduce taxes by utilizing ISA accounts or pension accounts (IRP, pension savings).
What is the real rate of return when adjusted for inflation?
Real rate of return ≈ Nominal rate of return minus inflation. Subtracting inflation of 31 TP3T from an annual investment return of 81 TP3T yields a real rate of return of approximately 51 TP3T. By entering the real rate of return into the calculator, you can check asset growth based on purchasing power.