The investment balance is calculated by compounding the initial lump sum (down payment + closing costs) at the entered annual return rate, with optional monthly contributions added each period: Balance = P × (1 + r)^n + C × [(1 + r)^n − 1] / r, where P is the initial amount, r is the monthly rate, n is the number of months, and C is the monthly contribution.
The real (inflation-adjusted) value divides the nominal balance by the cumulative inflation factor: Real Value = Nominal Value / (1 + inflation rate)^years.
Historical stock market returns (S&P 500) have averaged approximately 7% annually in real terms and 10% nominally over long periods. Past performance does not guarantee future results. All projections are estimates based on assumed constant returns.
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