Worked example
Start with $500 a month, raise it by 5% every year, and invest for 20 years at an assumed 7% a year. The estimated value is $387,377, from $198,396 put in.
- Monthly investment
- $500
- Yearly step-up
- 5%
- Assumed return (per year)
- 7%
- Time period
- 20 years
- Amount invested
- $198,396
- Estimated value
- $387,377
| Year | Monthly amount | Invested so far | Estimated value |
|---|---|---|---|
| 1 | $500 | $6,000 | $6,232 |
| 2 | $525 | $12,300 | $13,227 |
| 3 | $551 | $18,915 | $21,054 |
| 4 | $579 | $25,861 | $29,791 |
| 5 | $608 | $33,154 | $39,521 |
| 10 | $776 | $75,467 | $106,465 |
| 15 | $990 | $129,471 | $215,302 |
| 20 | $1,263 | $198,396 | $387,377 |
How to use this calculator
- Enter the monthly amount for the first year.
- Choose the yearly increase, as a percentage or an amount.
- Enter the expected return and the number of years.
Frequently asked questions
What is a step-up investment plan?
A plan in which the monthly amount rises every year, usually in line with pay. Starting at $500 and raising it 5% a year at 7% for 20 years gives about $387,377, against $261,983 with a flat amount.
Can the increase be a fixed amount?
Yes. Switch the increase type from % to an amount and enter how much is added to the monthly figure each year.
Are taxes and charges included?
No. The figures are before tax and product charges, which depend on your country.