Long-horizon · Free tool
Project the long-horizon trajectory of capital under a compound return rate. Useful for grounding return expectations and comparing strategies that look similar over short horizons but diverge dramatically over decades.
| Year | Nominal value | Real value | Earnings YoY |
|---|
FV = P × (1 + r/n)^(n×t) + C × [((1 + r/n)^(n×t) − 1) / (r/n)]
Where P = principal, r = annual rate, n = compounding frequency per year, t = years, C = periodic contribution. The first term compounds the starting capital; the second term compounds the contribution stream.
Indian large-cap equities long run (Nifty 50, since 1996): ~12–14% nominal CAGR. Mid-caps: ~14–16%. Small-caps: high mean but enormous variance. Active trading: honest practitioners report similar long-run returns to passive investing once costs and survivorship bias are accounted for. Strategies advertising consistent >25% annual returns over many years are nearly always overstating.
Inflation eats into purchasing power. A 12% nominal return at 6% inflation is a 5.7% real return (Fisher equation). Long-horizon projections that ignore inflation overstate the lifestyle that the final number can buy.
Educational tool. Projects deterministic compound math on inputs you provide. Does not predict actual future returns; past performance does not guarantee future results. Inputs do not leave your browser.