Ramsey Investment Calculator
Ramsey investment calculator: project retirement savings growth using the 12% average annual return rule of thumb popularized by Dave Ramsey.
Editorial review: Farrow (pseudonym; identity and professional credentials are not disclosed). This page is for educational purposes, not professional advice.
Your inputs
Results update as you type. Nothing you enter leaves your device.
Results
- Total contributed
- $160,000.00
- Growth from returns
- $977,307.98
Example with the starting values
These results use the calculator's initial inputs. Change the values above to calculate your own estimate.
Inputs
- Starting balance
- 10000 $
- Monthly contribution
- 500 $
- Annual return rate
- 12 %
- Years
- 25 years
Results
- Future value
- $1,137,307.98
- Total contributed
- $160,000.00
- Growth from returns
- $977,307.98
How does the Ramsey Investment Calculator work?
This projects compound growth of a starting balance plus regular monthly contributions at a fixed annual rate, defaulting to the 12% long-run stock market average Dave Ramsey uses in his retirement plans.
Future value = P(1+r)^n + C × [((1+r)^n − 1) / r], where P is the starting balance, C is the monthly contribution, r is the monthly rate, and n is the number of months.
The 12% figure is a long-term historical average before inflation; many planners use a more conservative 7-10% after-inflation rate instead.
For example, a $10,000 starting balance with $500 a month at 12% for 25 years grows to about $1,137,308, of which $160,000 is your own contributions and $977,308 is investment growth.
Frequently asked questions
Why does Dave Ramsey use 12%?
He cites the long-run average annual return of the S&P 500 before inflation. Actual year-to-year returns vary widely, and many advisors prefer a more conservative rate.
Is 12% realistic for planning?
It is an optimistic long-run average. A 7-10% rate accounts better for inflation and sequence-of-return risk.
Does this include inflation?
No, this is a nominal projection. Subtract about 2.5-3% to estimate inflation-adjusted (real) growth.
How much difference does the contribution make?
A lot: regular monthly contributions compound alongside the starting balance, so even small, consistent amounts add up significantly over 20+ years.
Is this the same as the Dave Ramsey investment calculator?
It uses the same 12 percent return calculator logic he teaches, and doubles as a general retirement growth calculator for any fixed annual rate you prefer.