Know your goal, timeline, and what you can save? See the annual return it would take to get there.
Solves for the constant annual return your current savings and monthly contributions would need to earn to reach a financial goal by your target date.
The calculator combines your starting balance and ongoing monthly contributions, then searches for the single annual return that grows them to your goal by the deadline. It uses iteration because there is no simple closed-form answer once regular contributions are involved. The output tells you what rate your plan implicitly depends on. Comparing that figure to realistic market expectations shows whether your goal is within reach.
If the required return is very high, say above what diversified portfolios have historically delivered, the tool flags that the goal may be unrealistic on the current plan. In that case you can extend the timeline, raise contributions, or lower the target rather than chase risky returns. A lower required return means you have room to invest more conservatively. This is an educational estimate that assumes a steady return and is not financial advice.
A broadly diversified portfolio has historically returned roughly the mid to high single digits over long periods, though outcomes vary widely. A required return well above that range is a warning that the plan may be too aggressive.
You can extend your timeline, increase monthly contributions, or reduce the goal to bring the required return into a realistic range. Relying on an unrealistically high return adds significant risk.
No, it assumes a smooth, constant return, while real markets fluctuate year to year. It shows what rate the goal requires, not what markets will actually deliver.
See the exact formula and a worked example on our methodology page.