Bonus Investment Growth Calculator: Future Value of an Invested Bonus
Work out what an annual bonus could become if you invest it and leave it to compound — rather than spending it. The result is the future value and the growth it earns over the period.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Future value | Total growth |
|---|---|---|
| $15k · 7% · 10yr | $29,507.27 | $14,507.27 |
| $5k · 7% · 20yr | $19,348.42 | $14,348.42 |
| $30k · 6% · 15yr | $71,896.75 | $41,896.75 |
| $10k · 8% · 25yr | $68,484.75 | $58,484.75 |
How This Calculator Works
Enter your after-tax bonus, the annual return you expect, and how many years it will stay invested. The calculator compounds the lump sum at that rate and shows the ending value and total growth.
The Formula
Future Value of a Lump Sum
PV = present value, r = annual rate, n = number of years
Worked Example
A $15,000 bonus invested at 7% for 10 years grows to about $29,507 — nearly doubling, with $14,507 of growth, without adding another cent. Bonuses are a prime candidate for investing precisely because they're not part of your regular budget: you weren't living on the money, so directing it to long-term investing barely changes your day-to-day while meaningfully building wealth. Repeat it with each year's bonus and the effect compounds across both the bonuses and the years.
Key Insight
A bonus is 'found money' psychologically, which makes it both easy to blow and easy to invest — the difference is deciding before it arrives. Since the bonus isn't funding your living expenses, redirecting it to investments has near-zero impact on your lifestyle while compounding works for years. The math caveats: this is the after-tax amount (bonuses are often withheld at a high flat rate, so your take-home is less than the headline figure), it's a nominal return before inflation, and markets don't deliver smoothly. A common framework is to split a bonus — pay down any high-interest debt first, top up the emergency fund, then invest the rest for the long term. The portion you invest is where this calculator's compounding turns a one-time reward into lasting wealth.
Frequently Asked Questions
How is the future value calculated?
The bonus is multiplied by (1 + annual return) raised to the number of years. $15,000 at 7% for 10 years is $15,000 × 1.07¹⁰ ≈ $29,507.
Should I enter the bonus before or after tax?
After tax — the amount you can actually invest. Bonuses are often withheld at a high flat supplemental rate, so your take-home is meaningfully less than the gross figure. Enter what lands in your account for an accurate projection.
Is investing a bonus better than spending it?
For long-term wealth, usually yes — because the bonus isn't part of your regular budget, investing it barely affects your lifestyle while compounding builds wealth for years. A common approach: clear high-interest debt and top up your emergency fund first, then invest the rest.
What return should I assume?
The default reflects a long-run diversified equity return (around 7% nominal), but actual returns vary widely and aren't guaranteed. Use a lower figure for a shorter horizon or money you can't afford to see drop, and remember this is before inflation.
What if I invest a bonus every year?
The effect multiplies. Each year's invested bonus compounds on its own timeline, so a habit of investing bonuses builds wealth far faster than a single one. To model recurring contributions rather than a single lump sum, use a compound-interest calculator with a monthly or annual contribution.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 1 independent, dated source. The starting values for expected annual return are taken from the benchmarks below and refresh whenever the snapshots are updated.
Methodology & Review
Future value is the lump sum compounded at the annual return over the period. It assumes the after-tax bonus is invested at once and left untouched at a constant return; it ignores further contributions, fees, inflation, and tax on investment gains.
Written by Ugo Candido · Last updated May 22, 2026.