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Future value of monthly investing

The formula behind the compound growth calculator.

The formulaFV = initial × (1 + r)ⁿ + monthly × ((1 + r)ⁿ − 1) ÷ rr = annual return ÷ 12n = number of months

Example 1: 100 rials a month at 6% for 10 years

r0.06 ÷ 12 = 0.005

n10 × 12 = 120

Growth1.005¹²⁰ = 1.8194

FV100 × (1.8194 − 1) ÷ 0.005

FV= 16,387.93 OMR

Paid in100 × 120 = 12,000

Example 2: with 5,000 rials at the start

Starting amount5,000 × 1.005¹²⁰ = 9,096.98

Total9,096.98 + 16,387.93 = 25,484.92 OMR

Assumes a constant return and end-of-month deposits. Real returns vary.

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All content on this site is for educational purposes only and is not investment advice or a recommendation. Past performance does not guarantee future results. Consult a licensed adviser before making any investment decision.