Dave Ramsey Investment Calculator

Initial Investment ($):

Monthly Contribution ($):

Expected Annual Return (%):

Investment Duration (Years):

Employer 401k Match (%):

Annual Salary ($):

Expected Annual Inflation Rate (%):

Annual Increase in Monthly Contributions (%):

Future Value ($):

Inflation-Adjusted Value ($):

Total Contributions ($):

Total Growth ($):

Monthly Retirement Income ($):

Real Monthly Income ($):

How to Calculate Ramsey Investment Growth

The Ramsey Investment Calculator estimates long-term investment growth using compound interest with monthly contributions. The basic formula is:

$ A = P \times \left(1 + \frac{r}{n}\right)^{nt} + PMT \times \left[ \frac{\left(1 + \frac{r}{n}\right)^{nt} - 1}{\frac{r}{n}} \right] $

Where:

$ P $: Initial investment.
$ r $: Annual return rate (decimal).
$ n $: Compounding periods per year (12 for monthly).
$ t $: Years.
$ PMT $: Monthly contribution (including employer match).

Employer match is calculated as (annual salary × match %) / 12 and added to monthly contribution. The annual increase applies only to the employee's monthly contribution; the match remains fixed. Inflation adjusts the final value: $ A / (1 + i)^t $, where $ i $ is inflation rate. Monthly retirement income uses the 4% rule: (future value × 0.04) / 12. Real Monthly Income is the inflation-adjusted version: (adjusted value × 0.04) / 12. The 25-year value is calculated using the same inputs but with a fixed 25-year duration.

Enter the inputs and calculate to see projected growth.

Using the Ramsey Investment Calculator

This calculator helps plan retirement by estimating investment growth based on Dave Ramsey's principles, including compound interest and employer matches.

Input initial investment, monthly contribution, return rate, years, employer match %, salary, inflation rate, and contribution increase %. The calculator outputs future value, inflation-adjusted value, total contributions, growth, monthly retirement income, real monthly income, and the final value after 25 years.

Example: Initial $10,000, monthly $500, 12% return, 25 years, 3% match on $60,000 salary, 3% inflation, 3% increase.

Monthly match: $ (60,000 \times 0.03) / 12 = 150 $
Initial PMT: $ 500 + 150 = 650 $
Future value (25 years): $1,652,977
Adjusted (25 years): ~$788,978 (at 3% inflation)
Monthly income: ~$5,510
Real Monthly Income: ~$2,630

Use this tool for financial planning and retirement projections.

Common FAQ

Below are frequently asked questions about the Ramsey Investment Calculator:

Q: What is Real Monthly Income?
A: It is the monthly retirement income adjusted for inflation, calculated as (inflation-adjusted value × 0.04) / 12.
Q: Why is the employer match fixed?
A: The annual increase applies only to employee contributions; match is based on initial salary and remains constant unless salary increase is specified (not in inputs).
Q: Is the 12% return realistic?
A: Dave Ramsey suggests 12% based on historical averages of good growth stock mutual funds; actual returns vary.
Q: What does “adjust for inflation” mean?
A: It calculates the future value in today's dollars for realistic buying power.
Q: What’s the 4% rule?
A: A guideline for withdrawing 4% annually in retirement without depleting funds.