Cash vs Invest Calculator

Compare the growth of cash vs invested money over time.

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Cash vs Invest

Enter the amount and compare keeping cash vs investing.

Opportunity cost of keeping cash
$0
Cash: $0 · Invested: $0
Cash future value
$0
Invested future value
$0
Difference
$0
Cash purchasing power (3% inflation)
$0
Invested real value
$0
Real difference
$0

Worked example

With the default inputs shown below, this calculator returns the following results:

InputValue
Amount ($)$100,000
Cash return (HYSA/CD) (%)4%
Investment return (stocks) (%)8%
Time period (years)20
ResultValue
Opportunity cost of keeping cash$246,983
Cash future value$219,112
Invested future value$466,096
Difference+$246,983
Cash purchasing power (3% inflation)$121,317
Invested real value$258,066

Values shown are produced by this page in your browser; change any input to update them.

How to use the Cash vs Invest

  1. Amount ($) — default $100,000
  2. Cash return (HYSA/CD) (%) — default 4%
  3. Investment return (stocks) (%) — default 8%
  4. Time period (years) — default 20
  5. Press Calculate to update the results instantly.

Frequently asked questions

Keep an emergency fund in cash and invest the rest for goals more than five years away. Cash loses to inflation over long periods.
The return you give up. If inflation runs at 3% and your account pays 4%, cash roughly breaks even; if the account pays 0.5%, you lose 2.5% a year.
More than 6-12 months of expenses in a plain deposit is usually excessive unless you are saving for a near-term purchase.

Sources & references