Investment Calculator

The Investment Calculator helps you solve for different variables in your investment plan. For example, given the starting amount, investment term, and rate of return, you can find your final balance. You can also switch between the tabs at the top to calculate other parameters.

How to Use

• Click the tabs at the top to select the value you want to calculate.
• Enter the other conditions for your investment plan. You can find a detailed explanation for each field below.
• Click the 'Calculate' button to see the results of your investment plan and a detailed growth schedule.

Definition of Inputs

• Starting Amount: The initial funds you invest, also known as the principal. This is the foundation for your investment's growth. For example, an initial investment of $10,000.
• Investment Term (Years): The length of time you plan to invest, in years. A longer period generally means more returns. You can also enter the duration based on your financial needs.
• Annual Rate of Return: The expected annual return on your investment. This is an estimate, as actual returns may fluctuate. It's generally recommended to use a conservative long-term average for your chosen investment type (e.g., 7-10% for a stock market index fund).
• Compounding Frequency: The frequency at which interest is calculated and added back to your principal. Because the interest itself also earns interest, more frequent compounding (like daily) will result in slightly higher returns than less frequent compounding (like annually).
• Additional Contributions: The amount you plan to add to your portfolio periodically (e.g., monthly), often called dollar-cost averaging. Consistent contributions can significantly boost your long-term growth.

Understanding the Results

• End Balance: The total value your investment is projected to grow to by the end of the term, including your principal and all returns.
• Total Principal Contributions: The total funds you invested over the entire period, which is the sum of the 'Starting Amount' and all 'Additional Contributions'.
• Total Accumulated Returns: All the profit your investment generated during the term, which is the 'End Balance' minus the 'Total Principal Contributions'.