Annual Growth of a Lump Sum
Project one investment using an effective annual return. Unlike nominal-rate compounding, the rate here already includes one full year of growth.
How to use Annual Growth of a Lump Sum
- Enter “Initial investment”, using the units and limits shown in its label.
- Enter “Effective annual return (%)”, using the units and limits shown in its label.
- Enter “Years”, using the units and limits shown in its label.
- Select Calculate or Process. Review the result and any validation message before copying or downloading available output. Reset clears the result and restores the starting inputs.
Method & assumptions
Future value = principal × (1 + effective annual return)^years.
Worked example
1000 growing at an effective 10% annually becomes 1331 after 3 years.
Results and projections are informational estimates, not financial, medical, legal, tax, or property advice. Check assumptions, units, rounding, and local requirements independently. Investment illustrations do not guarantee returns. Keep original files and check transformed output before use.
Questions, answered
How does this differ from compound interest?
Use this when your assumption is an effective annual return; use compound interest when the quoted rate is nominal with a specified compounding frequency.
Where does this calculation run?
It runs locally in your browser. Enter plain numbers without currency symbols or thousands separators; use the same currency and measurement units throughout unless a converter explicitly asks for units.