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What does consistent investing
actually build over a lifetime?

Set a monthly amount, set your ages, and see what consistency builds. The tabs go deeper: assumptions, taxes, and what waiting actually costs.

Personal Finance Principles
Michael R. Ronca · Coming 2026
View Books →
How to Use This Calculator — Click to expand

I built this to show what consistent investing does over time. None of it is a prediction. Returns never arrive in a straight line, and nobody can tell you what the next forty years look like. What I can show you is the mechanics: how time, rate of return, and consistency interact, and why starting early matters more than almost anything else you control.

1
Set your starting balance

Already have money invested? Enter it here and it compounds right alongside your contributions. I assume it sits in the same account type you're modeling.

2
Set your monthly contribution

How much you invest each month, whether through a 401(k), IRA, or brokerage account. A warning appears if you exceed an IRS annual limit. The Assumptions tab can layer in annual increases from raises.

3
Set your age range

Starting age is when you begin. Retirement age is when the portfolio gets valued. The distance between those two numbers does more work than any other input here, including the monthly amount.

4
Understand the four strategies

S&P 500 — tracks 500 of America's largest companies. Broad diversification, historically reliable long-term growth. Available in nearly every 401(k) and IRA. Nasdaq-100 — a familiar growth-oriented, technology-heavy benchmark. It has outperformed the S&P 500 in many historical periods, but with higher concentration, greater volatility, and severe drawdowns, including the dot-com crash. Growth 80/20 Portfolio — a growth-oriented static mix of 80% stocks and 20% bonds. It is more aggressive than a traditional balanced portfolio, but easier to understand and audit than a custom target-date glide path. Custom Rate — enter any return assumption you want to test.

5
Read the final numbers correctly

By default you're looking at nominal future dollars, the actual balance you'd see in your account decades from now. Flip on Inflation-Adjusted mode in the Assumptions tab to translate everything into today's purchasing power. A million dollars in forty years buys a lot less than a million today. The toggle keeps you honest about that.

6
Use the Taxes tab for tax analysis

The Taxes tab models a simplified Roth vs. pre-tax comparison, including capital gains tax on reinvested paycheck savings. The Timing & Income tab shows the cost of waiting and a simple 4% rule illustration.

Where I'd put dollars first, for most people: capture your full 401(k) employer match before anything else. Matched dollars are an instant 50 to 100% return, and nothing else on this page competes with that. Then max a Roth IRA ($7,500 in 2026) for decades of tax-free growth. Then go back to the 401(k) up to the $24,500 limit, and put whatever remains in a taxable brokerage.

One caveat I take seriously: not every dollar belongs in a retirement account. Money in a 401(k) or IRA is generally locked up until age 59½. Keeping real savings liquid for emergencies, a down payment, or a business opportunity is worth the tax cost of a brokerage account. This calculator models growth, not account allocation. The Taxes tab compares Roth and pre-tax outcomes.

Note: These strategies are teaching benchmarks, not recommendations. What you actually buy depends on your risk tolerance, timeline, taxes, and life.
What this is showing you

NOTE — All projections assume that dividends and distributions are reinvested rather than taken as cash (in an actual brokerage account, this may require a dividend reinvestment election or manual reinvestment). The return assumptions used here are nominal — meaning they reflect actual future dollar growth before adjusting for inflation. When Inflation-Adjusted mode is enabled in the Assumptions tab, projected balances are translated into today's purchasing power using the selected inflation rate. S&P 500: ~10.5% avg (1957–2025). Nasdaq-100: ~12% illustrative growth assumption. Growth 80/20 Portfolio: growth-oriented static mix of 80% stocks and 20% bonds (stocks ~10.5%, bonds ~4.5%, blended ~9.3%). Inflation and annual contribution growth controls live in the Assumptions tab and are reflected across the calculator when enabled. Not financial advice.

Assumptions

Set the assumptions that drive the calculator: compounding, inflation, and annual contribution increases

Compounding
Returns
Annual Contribution Increase
0.0%
0%10%
Applies once per year to the monthly contribution amount. Example: a 3% increase turns $500/month into $515/month in year 2. Default is 0% so the calculator remains conservative unless the user chooses otherwise.
NASDAQ-100 NOTE — Concentrated and volatile: this index fell 83% in the dot-com crash. I use 12% because it sits below the index's ~14% average since 1985 and its ~13% twenty-year average, above only the worst entry point in its history (March 1999). History, not a forecast.

Taxes

A simplified Roth vs. pre-tax comparison, including reinvested paycheck tax savings.

Roth vs. Pre-Tax (Traditional)

Net take-home after all taxes · same contribution · same strategy

Strategy
ASSUMPTION — This is a simplified tax illustration, not a full tax plan. It assumes your starting balance (if any) is already held in the same account type being modeled on each side. A $20,000 starting balance is assumed to be pre-tax on the Traditional side and post-tax Roth dollars on the Roth side. It does not model state taxes, annual taxable distributions, income limits, phase-outs, RMDs, changing tax law, or behavioral differences in whether people actually invest tax savings.

Current Tax Rate
22.0%
10%45%

Pre-tax contributions reduce taxable income at this rate today

Retirement Tax Rate
18.0%
0%40%

Traditional withdrawals taxed as ordinary income

Capital Gains Rate (LTCG)
15.0%
0%24%

Applied to gains in the taxable account holding reinvested paycheck savings

The Core Question

2026 Federal Long-Term Capital Gains Tax Brackets0% rate: taxable income up to $49,450 single / $98,900 married filing jointly  ·  15% rate: taxable income over those amounts up to $545,500 single / $613,700 married filing jointly  ·  20% rate: taxable income above $545,500 single / $613,700 married filing jointly  ·  3.8% NIIT: may also apply at higher incomes.

Timing & Income

See what waiting may cost, estimate the contribution needed to reach a target, and use the 4% rule to translate a projected portfolio balance into rough annual income.

Start Now vs. Start Later

What does waiting to start actually cost you at retirement?

Strategy

Years Delayed
10 years
1 yr20 yrs
Goal Mode

Want a specific balance by retirement? Estimate the starting monthly contribution required to get there.

Strategy

Target Wealth Balance
$2,000,000

What this solves for: Goal Mode estimates the starting monthly contribution needed to reach your target by retirement age, using the selected strategy, starting balance, compounding setting, inflation mode, and annual contribution increase. If annual contribution increases are enabled, the required contribution starts lower and rises each year.
Important: This is a savings-rate illustration built on constant returns, and real markets won't cooperate that smoothly. With Inflation-Adjusted mode on, your target means today's dollars; otherwise it's a future nominal amount.
4% Rule Illustration

A simple income illustration based on the ending portfolio values above — not a full withdrawal plan.

What is the 4% rule? The 4% rule is a common retirement-planning shortcut used to translate a portfolio balance into a rough first-year withdrawal amount. For example, a $2,000,000 portfolio × 4% equals $80,000 per year, or about $6,667 per month.

Why use it here? This calculator uses 4% only as a teaching shortcut — a way to make the projected balance easier to understand as possible annual income. It does not mean the portfolio is guaranteed to last forever, and it does not mean each strategy shown is equally appropriate for retirement withdrawals. The 4% rule is most commonly discussed with diversified stock/bond portfolios; a more concentrated or aggressive portfolio may carry greater sequence-of-returns risk once withdrawals begin.
Important: This is an illustration, not a withdrawal plan. Real retirements deal with market sequences, taxes, and changing spending that a flat 4% ignores.
These numbers are the preview. The plan for reaching them is in the book — Personal Finance Principles, coming 2026. Browse Books →

Methodology

What the calculator is, what it is not, and the assumptions behind the numbers.

What this calculator is / is not
What it is

A compounding illustration. It shows how starting balance, monthly contributions, time, returns, inflation, and taxes interact to produce an outcome.

What it is not

Advice. It doesn't know your spending, your Social Security, your health costs, or whether you're on track to retire. It answers one question well: what does consistent investing build over time?

Why these benchmarks?
Why S&P 500 and Nasdaq-100?

The S&P 500 is the obvious broad-market benchmark. For the growth slot, the textbook choice would be the Russell 1000 Growth index, but almost nobody outside the industry knows it. The Nasdaq-100 measures largely the same thing, and it's the index you actually recognize, and ETFs that track it (such as Invesco's QQQ) are available in nearly every brokerage. For a teaching tool, I'd rather use the benchmark you'll encounter in real life than the academically pure one you won't.

Why a 12% Nasdaq-100 assumption?

I anchored 12% to the index's actual record, then chose below the average. The Nasdaq-100 has returned about 14.25% per year since its 1985 inception and roughly 13% per year over the last 20 years. The worst realistic starting point in its history, buying the oldest ETF tracking the index (Invesco QQQ) the month it launched in March 1999, near the top of the dot-com bubble, still produced about 11% per year with dividends reinvested. So 12% sits under every multi-decade average and above only that single worst entry point. Two warnings belong next to it: the index fell 83% from 2000 to 2002 and needed most of two decades to fully recover, and most professional forecasts, Vanguard's among them, expect US growth stocks to return less over the next decade than they did over the last four.

Educational benchmarks, not recommendations. These strategy labels are used to show how different assumptions and risk profiles can change compounding outcomes. They are not recommendations to buy any index fund, ETF, or specific investment.
Common Questions
No. I use smooth annualized assumptions because they teach the mechanics clearly. Real markets are volatile, and returns never arrive in a straight line.
Nasdaq-100 is modeled as a growth-oriented benchmark. It may show a higher result because this calculator uses a higher illustrative return assumption than the S&P 500, but that assumption is not a forecast. Higher assumed returns generally come with higher concentration, higher volatility, and larger potential drawdowns.
From the index's own record, chosen conservatively. The Nasdaq-100 has returned about 14.25% per year since 1985 and roughly 13% per year over the last 20 years. Even the worst realistic entry point, buying the oldest ETF tracking this index at its March 1999 launch, near the dot-com peak, produced about 11% per year with dividends reinvested. I use 12%: below every multi-decade average, above only that worst case. It describes history, not the future, and the same index once fell 83% and took most of two decades to fully recover.
It is a static 80% stock / 20% bond mix. It is more growth-oriented than a traditional balanced portfolio and does not automatically become more conservative over time.
Yes. Return assumptions are total-return assumptions and assume dividends/distributions are reinvested. In an actual brokerage account, reinvestment may require an election or manual action.
Inflation-adjusted mode translates future dollars back into today's purchasing power, so the displayed values show what the future balance may feel like in current dollars.
Goal Mode works backwards from a target wealth balance and estimates the starting monthly contribution needed to reach it by the selected retirement age. It uses the same assumptions as the rest of the calculator, including starting balance, compounding, inflation mode, annual contribution increases, and the selected strategy. It does not solve for a required investment return.
The 4% rule is a common retirement-planning shortcut used to estimate a rough first-year withdrawal amount from a diversified portfolio. It became popular because it helps translate a portfolio balance into a more understandable income number. For example, a $2,000,000 portfolio × 4% equals $80,000 per year, or about $6,667 per month.

This calculator uses the 4% rule only as an illustration. It does not mean the portfolio is guaranteed to last forever, and it does not mean every strategy shown is equally appropriate for retirement withdrawals. The rule is most commonly discussed in connection with diversified stock/bond portfolios, and actual withdrawals depend on taxes, market returns, inflation, timing, spending behavior, and account type.
No. The Taxes tab is a simplified Roth vs. pre-tax illustration. Actual account choice depends on eligibility, liquidity needs, tax situation, employer match, and planning goals.