See how your investments grow with compound interest. Enter your starting balance, monthly contribution, and expected return rate to plan your financial future the Dave Ramsey way.
Investment Details
Growth Results
The Dave Ramsey Investment Calculator follows the principles taught by Dave Ramsey: consistent monthly investing in good growth stock mutual funds with an average 10–12% annual return. This calculator shows you the power of compound interest over time - the key to Dave Ramsey's Baby Step 4 (investing 15% of household income).
Compound interest means you earn returns not just on your original investment, but also on the returns you've already earned. Over 20–30 years, this snowball effect is dramatic. Dave Ramsey often says, "If you invest $500/month from age 25 to 65 at 10%, you'll retire with over $3 million."
Dave Ramsey typically uses a 10–12% average annual return based on the historical S&P 500 performance. However, actual returns vary year by year. A conservative estimate would be 7–8% after inflation.
Dave Ramsey recommends investing 15% of your gross household income into retirement accounts (Baby Step 4). Start with your employer-matched 401(k), then max out a Roth IRA, then go back to your 401(k).
The S&P 500 has averaged about 10–11% annually since inception (before inflation). After inflation, it's closer to 7%. While past performance doesn't guarantee future results, long-term investing in diversified index funds has historically provided strong returns.