Investment Time Horizon
Project a retirement balance and income for your investing horizon.
About Investment Time Horizon
The current balance and monthly deposits compound to retirement age, and the result is converted to a monthly income over a 25 year drawdown. The longer the horizon, the more compounding does the work, so small contributions made early outperform big ones made later.
Formula
Investment Time Horizon
FV = balance x (1+i)^n + contribution x ((1+i)^n - 1)/i; income = annuity drawdown
- i
- Monthly return from the annual rate divided by 12
- m
- Months of retirement drawdown (25 years)
Worked example
With the default values below, Investment Time Horizon returns Years to Retire of 30. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Current ageaccepts 1–100 years
- 30 years
- Retirement ageaccepts 1–100 years
- 60 years
- Current balanceminimum 0
- 10,000
- Monthly contributionminimum 0
- 400
- Annual returnaccepts 0–30 %
- 7 %
Results
- Years to Retire
- 30 years
- Projected Balance
- $569,153
- Monthly Income
- $4,023
Step by step
- 1Values used
- 2Investment Time Horizon
- 3Years to Retire= 30 years
- 4Projected Balance= 569,153
- 5Monthly Income= 4,023
Assumptions and limits
- The result is derived only from the 5 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or fees or charges into account.
- Figures are rounded for display to whole numbers, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Investment Time Horizon calculated?
FV = balance x (1+i)^n + contribution x ((1+i)^n - 1)/i; income = annuity drawdown The current balance and monthly deposits compound to retirement age, and the result is converted to a monthly income over a 25 year drawdown.
Why does Investment Time Horizon matter?
The longer the horizon, the more compounding does the work, so small contributions made early outperform big ones made later.
What values do I need to enter?
This calculator takes 5 inputs: Current age, Retirement age, Current balance, Monthly contribution, Annual return. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.