About the Trump Account Investment Growth Calculator
This tool estimates the future value of a child-focused investment account using a starting balance, scheduled contributions, expected return, fees, and inflation. It can help parents, guardians, and savers compare long-term scenarios for milestones such as age 18, 25, 35, or retirement.
How to use this calculator
- Enter the child's current age and the target age for the projection.
- Enter the starting balance and the ongoing contribution amount.
- Choose whether the contribution is made monthly or annually.
- Enter the expected annual return, annual fees, and inflation assumption.
- Select Calculate Growth to view the projected balance, contributions, growth, real value, chart, and yearly table.
- Select Reset to clear the results and restore the default form values.
How it works
The calculator first determines the number of years between the child’s current age and the target age. If the target age is not greater than the current age, it adjusts the target to one year later so the projection can run.
It calculates a net annual return by subtracting the annual fee percentage from the expected annual return. That net annual return is converted into an equivalent monthly growth rate, and the balance is compounded monthly.
Contributions are then added either every month or once per year, depending on the selected frequency. Total added by you includes only these ongoing contributions, not the starting balance, and investment growth equals the final balance minus the starting balance and contributions.
The inflation-adjusted value discounts the final projected balance by the inflation assumption over the full projection period. Results are educational estimates and are not investment, tax, or legal advice; actual account rules, taxes, fees, limits, and returns may differ.
Example calculation
Suppose a child is age 0 with a $1,000 starting balance, $100 monthly contributions, a 7% expected annual return, 0.1% annual fees, 2.5% inflation, and a target age of 18. The net annual return is 6.9%, compounded monthly for 216 months. Total ongoing contributions are $21,600, and the calculator projects an ending balance of about $48,216, including about $25,616 of investment growth, with an inflation-adjusted value of about $30,922 in today’s dollars.
Frequently asked questions
Does the starting balance count as money added by you?
No. The calculator’s total added by you includes only the ongoing contributions made during the projection, not the initial starting balance.
Are contributions added before or after investment growth each month?
Each month, the existing balance is grown first using the monthly net return, then the contribution is added if scheduled for that month.
How are annual contributions handled?
If annual is selected, the contribution is added once every 12 months, at the end of each projection year.
What does inflation-adjusted value mean?
It estimates the future balance in today’s purchasing power by discounting the final balance using the annual inflation assumption.
Can the projected investment growth be negative?
Yes. If the net return is low or negative after fees, the calculated investment growth can be negative, especially with higher fees or poor market assumptions.