What Is the Net Worth Projection Calculator?
This calculator estimates how your net worth could grow over time by combining the compound growth of your current assets with the future value of your ongoing annual savings. It is useful for retirement planning, tracking long-term financial goals, and understanding the power of compounding. The tool is currency-agnostic — figures are shown in dollars but the math applies to any currency.
How to Use It
Enter your current net worth, the amount you save and invest each year, an expected annual growth rate (a long-run stock/bond blend is often estimated at 5–8%), and the number of years to project. The result shows your projected future net worth, broken down into the growth of your existing assets, the growth of your future savings, the total amount you actually contributed, and the total investment growth on top of contributions.
The Formula Explained
$$FV = P\,(1+r)^{n} + S\cdot\frac{(1+r)^{n}-1}{r}$$ where \(r\) is the annual growth rate as a decimal and \(n\) is the number of years. The first term compounds your existing wealth; the second term is the future value of an ordinary annuity (contributions made at the end of each year). If \(r\) is 0, the savings term simply becomes \(\text{AnnualSavings} \times n\).
Worked Example
With a current net worth of $250,000, annual savings of $10,000, a 7% growth rate, and 20 years: \((1.07)^{20} \approx 3.8697\). Current grows to \(250{,}000 \times 3.8697 \approx \$967{,}423\). Savings grow to \(10{,}000 \times (3.8697 - 1) / 0.07 \approx \$410{,}016\). Total projected net worth \(\approx \$1{,}377{,}439\), of which roughly $927,439 is investment growth.
FAQ
Does this account for inflation? No — it shows nominal values. To estimate real (inflation-adjusted) results, use a growth rate net of expected inflation.
Are contributions made at year start or year end? This model assumes end-of-year contributions (an ordinary annuity), which is the standard convention.
Is the growth rate guaranteed? No. Market returns vary year to year; this is a smoothed projection for planning purposes only.
