Use this investment calculator to estimate the future value of your contributions based on your expected investment return.
Investment Calculator Explanation
This investment calculator is designed to help you estimate the future value of your investment based on an initial investment amount, monthly contributions, an annual interest rate, and the number of years you plan to let the investment grow. It uses the compound interest formula to calculate the results.
How to Use the Calculator
– Enter the initial investment amount in dollars without commas or currency symbols.
– Enter your monthly contribution amount, if any, or leave it at 0 if you do not wish to make monthly contributions.
– Enter the anticipated annual interest rate as a percentage (e.g., if you expect a 5% annual return, simply enter 5).
– Enter the number of years you plan to keep the investment growing.
– Click on the “Calculate” button to see the estimated future value of your investment.
How It Calculates Results
The calculator uses the future value formula for compounded monthly investments, considering both the initial lump sum and the monthly contributions.
Limitations
This calculator assumes a fixed annual interest rate throughout the investment period without considering taxes, inflation, or changes in contributions over time. It is best used as an estimation tool rather than as a precise predictor of future investment returns.