Investment Calculator
Calculate investment returns, required contributions, and time to reach financial goals with compound interest
Investment Calculator
Main Features
Amount you invest initially
Annual percentage return
Years
Months
How often interest compounds
Expected annual inflation rate
Additional Contributions
Frequency of additional contributions
Results
Inflation-Adjusted Results
Investment Details
Calculation Type: Final Balance
Term: 10 years 0 months
Compounding: Monthly
Contributions: Never
Performance Metrics
Annual Return: 5%
Inflation Rate: 2%
Real Return: 3.00%
Total Return: 64.70%
Investment Analysis
Example Calculation
Investment Scenario
Initial Investment: $10,000
Annual Return: 7%
Investment Period: 20 years
Monthly Contributions: $500
Compounding: Monthly
Results
Final Balance: ~$278,000
Total Contributions: $130,000
Interest Earned: ~$148,000
Total Return: ~113%
Investment Basics
Compound Interest
Earning interest on both principal and accumulated interest
Time Value of Money
Money available now is worth more than the same amount in the future
Risk vs Return
Higher potential returns typically come with higher risk
Dollar-Cost Averaging
Regular contributions reduce market timing risk
Investment Formula
Compound Interest
FV = PV × (1 + r/n)^(nt)
FV = Future Value, PV = Present Value, r = Annual Rate, n = Compounding Frequency, t = Time
With Regular Contributions
FV = PV × (1+r)^t + PMT × [((1+r)^t - 1) / r]
PMT = Regular Payment Amount
Investment Tips
Start investing early to maximize compound growth
Diversify your portfolio to reduce risk
Consider inflation when planning long-term goals
Regular contributions can be more powerful than timing the market
Review and adjust your investment strategy periodically
Understanding Investment Calculations
What is Investment?
An investment is an asset or item acquired with the goal of generating income or appreciation. In finance, it refers to the allocation of money expecting to receive more money in the future through capital gains, dividends, interest, or other forms of return.
Key Investment Concepts
- •Compound Interest: Interest earned on both principal and previously earned interest
- •Rate of Return: The percentage gain or loss on an investment over time
- •Time Horizon: The length of time an investment is held
- •Risk vs Return: Higher potential returns typically involve higher risk
Investment Strategies
Lump Sum Investment
Investing a large amount all at once. Best when markets are expected to rise consistently.
Dollar-Cost Averaging
Regular periodic investments regardless of market conditions. Reduces timing risk and volatility impact.
Growth Investing
Increasing contribution amounts over time to account for inflation and income growth.