Investment Calculator

How it Works

This investment calculator provides a rough estimate on how your investments will grow over time, assuming a steady average rate of return with regular contributions. A summary of your ending balance and an investment growth will be produced along with a pie chart. Additionally, a graph showing yearly growth will be produced along with the table of values from the graph.

Limitations

This calculation is intended for long-term investing and assumes an ideal steady average return rate with regular contributions. In reality, returns may vary greatly and your growth depends on the state of the market economy and your overall investment strategy. Table values are calculated at the beginning of each month.

How can this tool help me?

This tool helps you understand:

• How much you need to save from your income, and how much time it will take to reach your financial goals through investing
• Realistic expectations to prepare you for your future
• The power of compounding interest and the effect that regular contributions have on growing your wealth

How can I figure out my retirement needs?

First, estimate the amount of money you’ll need to retire. You may use the 4% rule as a starting point: multiply your desired annual retirement income by 25 to find the account balance necessary to sustain your future living expenses. Next, estimate the number of years until retirement. Adjust the monthly contributions until you reach the account balance you need.

What can I expect to learn?

Your annual rate of return is what primarily determines how fast you will reach your goal. This rate depends on your investment strategy and risk tolerance. Greater growth potential generally brings more risk. Investing in the overall stock market with a properly diversified portfolio provides a 7% return on investment, on average.

You will find that consistency is key in reaching your goals. You don’t have to have a large amount of money to invest, just put aside a portion of your income regularly and watch your wealth grow. Even relatively small contributions made each month add up and have a great impact if done consistently.