Investment Calculator
Project your future wealth with our investment calculator. Factor in initial principal, monthly contributions, return rates, and taxes.
Projected Future Value
$0
Investment Growth Formula
FV = P(1+r)โฟ + PMT ร [((1+r)โฟ โ 1) / r] Where P is principal, PMT is contribution, r is rate per period, and n is number of periods.
Frequently Asked Questions
- Total return is calculated using the formula: ((End Value โ Start Value) + Dividends) รท Start Value ร 100. For example, if you invest $1,000 and it grows to $1,100 plus $50 in dividends, your total return is (($1100 - $1000) + $50) รท $1000 = 15%.
- ROI (Return on Investment) is a performance measure used to evaluate the efficiency of an investment. Formula: (Net Profit รท Cost of Investment) ร 100. If you spend $5,000 on an investment and sell it for $6,500, your ROI is ($1,500 รท $5,000) ร 100 = 30%.
- Use the future value of an annuity formula: FV = P(1+r)โฟ + PMT ร [((1+r)โฟ โ 1) / r]. P is principal, PMT is monthly contribution, r is monthly rate, and n is total months. Our calculator automates this complex math to show your projected wealth.
- The Rule of 72 is a shortcut to estimate how long it takes to double your money. Formula: 72 รท Annual Interest Rate = Years to Double. At a 10% return, your money doubles in about 7.2 years (72 รท 10).
- Dividend yield is the ratio of annual dividends per share to the stock price. Formula: (Annual Dividends per Share รท Price per Share) ร 100. If a stock pays $2 in dividends annually and costs $50, its yield is 4%.
- The Real Rate of Return accounts for inflation. Formula: ((1 + Nominal Rate) รท (1 + Inflation Rate)) โ 1. If you earn 8% but inflation is 3%, your real return is roughly 4.85%.
- Simple interest is calculated only on the principal amount. Compound interest is calculated on the principal plus any accumulated interest from previous periods. Over time, compounding leads to significantly higher growth.
- Capital gains tax is paid on the profit from selling an investment. In the US, Long-term capital gains (assets held > 1 year) are taxed at 0%, 15%, or 20% depending on income. Short-term gains are taxed as regular income.
- Future value (FV) is the value of a current asset at a specified date in the future based on an assumed rate of growth. It is the core formula used in our investment calculator to project your long-term savings.
- A 'good' return depends on risk and asset class. Historically, the S&P 500 averages ~10% annually before inflation. Real estate often yields 7โ10%, while 'safe' assets like high-yield savings or Treasury bonds currently offer 4โ5%.