The Investment Growth Calculator is great for anyone who is looking to make a short, medium or long term financial investment. While these investments are very common, it can often be difficult to calculate the amount of money that a person stands to make from one of them.
With this calculator, it is effortless to test out various amounts of investment and to see what the end result will be
This calculator is fairly simple and straightforward. There are four options that can be manipulated as desired: initial amount, annual contribution, annual interest rate, and number of years.
The initial amount pertains to how much you will invest to start off with. This figure will probably be between 20% to 60% of the savings that are in your bank account/stockbroker account. As an example, this figure can be set to $20,000.
The annual contribution refers to how much money will be placed into the account at the end of each year. Calculate that amount as a percentage of how much you expect to earn, and how much you will be able to save. If you do not plan on saving very much every year, you can set the annual contribution to $5,000.
The annual interest rate you will gain on the investment account will probably be specified by the financial institution. For this example, we can set the interest rate to 2% over the course of a year. Of course, that rate will probably be much higher.
Length of Investment:
If you are going to make this a long term investment, you can set the “number of years” portion to 20 years for example. This means that you will not withdraw any money from the account for 20 years, which would make it similar to a retirement account.
With all of those variables set, you will press calculate and get a total amount of $151,205.80. This means that with a $20,000 initial deposit, a 2% interest rate, and a $5,000 annual contribution, you will have a savings fund of $151,000 after 20 years.