Forecast
Forecast projects your future financial position based on current behavior. Use it for retirement planning, goal setting, and understanding the long-term impact of today’s savings rate.
How Forecasting Works
The forecast calculator projects wealth growth using three inputs:
- Monthly Contribution - How much you add to savings each month
- Annual Return Rate - Expected investment growth percentage
- Time Horizon - Number of years to project
The calculation compounds monthly contributions and assumed returns to show potential future balances.
Wealth Trajectory Chart
The main chart displays projected wealth over time:
- X-axis - Years from now
- Y-axis - Total accumulated wealth
- Area fill - Visual representation of growth
- Hover points - Exact balance at any year
The chart shows the power of compound growth: small increases in monthly savings produce large differences over decades.
Input Controls
Adjust assumptions to test different scenarios:
Monthly Top-Up
Enter the amount you plan to save or invest each month. This should be money available after expenses.
Tips:
- Use your current average monthly savings for realistic projections
- Increase the amount to see the impact of saving more
- Decrease to see the cost of reduced savings
Annual Rate
Enter your expected average annual investment return.
Common benchmarks:
- Conservative (5-6%) - Bonds, high-yield savings
- Moderate (7-8%) - Balanced stock/bond portfolio
- Aggressive (9-10%) - Stock-heavy portfolio
Note: These are long-term averages. Actual returns vary year to year.
Years
Select how far into the future to project.
Common timeframes:
- 5 years - Near-term goals (emergency fund, car purchase)
- 10 years - Medium-term goals (house down payment)
- 20-30 years - Retirement planning
The chart updates automatically as you change inputs.
Summary Statistics
The card displays key outcomes for your scenario:
- Final Amount - Projected balance at the end of the period
- Total Contributed - Sum of all monthly deposits (principal)
- Total Interest - Growth from returns alone
- Growth Multiple - Final balance divided by total contributions
Ledger Projections Table
The detailed table shows year-by-year breakdown:
| Column | Description |
|---|---|
| Year | Time period |
| Starting Balance | Amount at year beginning |
| Annual Contribution | Monthly top-up × 12 |
| Interest Earned | Growth from returns |
| Ending Balance | Total at year end |
Use this table to see exactly how the balance builds each year.
Scenario Planning
Test different life scenarios:
Scenario 1: Maintain Current Savings
- Enter your actual monthly savings amount
- Use a conservative return rate (6-7%)
- Project to retirement age
- Note the final amount
Scenario 2: Increase Savings
- Increase monthly contribution by 10-20%
- Keep other inputs the same
- Compare final amount to Scenario 1
Scenario 3: Higher Returns
- Keep monthly contribution the same
- Increase return rate by 1-2%
- Compare final amount to Scenario 1
Scenario 4: Longer Timeline
- Keep contributions and returns the same
- Extend years by 5-10
- See the impact of starting earlier
Important Limitations
Forecasts Are Estimates
Actual results will differ from projections because:
- Investment returns fluctuate year to year
- Monthly contributions may vary
- Inflation affects purchasing power
- Life events change financial plans
Not Financial Advice
This tool illustrates compound growth. It does not:
- Recommend specific investments
- Account for taxes
- Factor in inflation
- Consider fees or expenses
Consult a financial advisor for personalized planning.
Best Practices
Use Conservative Assumptions
Better to be pleasantly surprised than disappointed:
- Use lower return rates (6-7% for planning)
- Assume you will miss some contribution months
- Round down monthly savings estimates
Update Regularly
Revisit forecasts quarterly or when major changes occur:
- Income changes
- Expense reductions
- New financial goals
- Market condition shifts
Compare to Goals
Work backward from targets:
- Determine your goal (for example, $1 million at retirement)
- Calculate required monthly savings
- Adjust budget to meet that contribution level
Troubleshooting
Chart Not Updating
- Verify all three inputs have values
- Ensure amounts are positive numbers
- Check annual rate is realistic (not 50%+)
- Refresh the page if needed
Numbers Seem Too High
- Check you entered annual rate, not monthly (7% not 0.58%)
- Verify monthly contribution is realistic
- Confirm time horizon is correct
Numbers Seem Too Low
- Confirm monthly contribution amount
- Check if you are using a very conservative return rate
- Verify the time horizon includes all years you plan to save
Related Features
- Calculators - Run specific scenarios with the compound interest tool
- Accounts - Review current balances as a starting point
- Reports - Analyze historical savings rates for realistic inputs