How Investment Returns are Calculated
The investment return is calculated using **compound interest**, which means your returns grow exponentially over time.
The formula used is:
- Future Value (FV): P(1 + r/n)^(nt) + (M × ((1 + r/n)^(nt) - 1) / (r/n))
- P = Initial Investment, M = Monthly Contribution
- r = Annual Interest Rate (decimal), n = 12 (compounded monthly)
- t = Number of Years