Ramsey Investment Calculator
Project long-term wealth using the 12 per cent growth assumption popularised by Dave Ramsey.
Last updated · View algorithm, constants and default inputs (JSON)
About this calculator
This is an editable scenario, not a forecast or guarantee. Returns vary and fees reduce growth. The default 7% is an illustrative long-term assumption; compare several rates. Inflation is now an explicit input, and the withdrawal amount is a simple percentage calculation, not a safe-income recommendation.
Worked example
calculated with the default values below
Starting amount 1,000 $ · Monthly investment 500 $ · Assumed annual return 7 % · Years invested 30 years · Withdrawal rate in retirement 8 % · Assumed annual inflation 2.5 % Projected balance 592,338.56 $ · Total you paid in 181,000.00 $ · Market growth 411,338.56 $ · Monthly income at that withdrawal rate 3,948.92 $ · Years to reach $1,000,000 36.9 years · Years to double (rule of 72) 10.3 years · Value in today’s dollars at 2.5% inflation 282,393.07 $
General background references
Disclaimer
These calculators give estimates for general information only. They are not financial, tax or investment advice and do not take your personal circumstances into account. Before borrowing, investing or filing, confirm the numbers with a qualified adviser in your jurisdiction.
Implementation source
This record describes the implementation used by this page. It is not independent validation. External references, when available, support only the stated formula or definition; estimates and custom rules retain their own assumptions.
Formula and variables
B_{k+1} = B_k × (1 + r_m) + M; r_m = (1 + r_a)^(1/12) − 1
- B_k
- Balance after k months
- r_m
- Monthly rate
- r_a
- Annual return (%)
- M
- Monthly contribution ($)
- n
- Number of months
Real value = projected balance ÷ (1 + user-entered inflation rate)^years. All return and withdrawal inputs are scenarios, not guarantees.
Frequently asked questions
Is the projected return or withdrawal guaranteed?
No. The return and inflation rates are editable assumptions; investment outcomes vary and fees reduce returns. The withdrawal output is a simple percentage of the projected balance, not a safe-income recommendation.