Your investment details
Investment type
Investment details
Final value
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before tax
Total contributed
—
your money in
Investment growth
—
compound returns
Real value (inflation adj.)
—
today's dollars
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Year by year growth
| Year | Contributions | Investment value | Total growth |
|---|
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Investment FAQs
What is compound interest?
Compound interest is earning returns on your returns — your investment grows, and then you earn returns on the larger amount. Over time this creates exponential growth. Einstein reportedly called compound interest the eighth wonder of the world. The key is starting early and staying invested.
What is a realistic return for Australian shares?
The Australian share market (ASX) has historically returned approximately 9-10% per year on average including dividends, before inflation. After inflation, the real return is approximately 6-7%. Individual years vary significantly — long-term averages smooth out periods of high volatility.
Should I invest in ETFs or individual shares?
For most Australians, broad market ETFs (Exchange Traded Funds) are the recommended starting point. They provide instant diversification, have low fees and historically outperform most actively managed funds over the long term. Popular Australian ETFs include VAS (Vanguard Australian Shares), VGS (Vanguard International Shares) and A200.
How much should I invest each month?
Any amount invested consistently beats investing nothing. Even $200 per month invested at 8% for 30 years grows to approximately $300,000. The most important factors are starting as early as possible, investing regularly regardless of market conditions, and keeping fees low.