Investment Calculator

Estimate your investment growth or calculate required contributions based on your starting amount, return rate, and duration.

Calculation Mode:

Starting Amount:

Enter the amount you are initially investing.

Duration:

Specify the duration for the investment (in years or months).

Return Rate:

Enter the expected return rate for your investment.

Contribution:

Enter the regular contribution (monthly or annual) to reach the ending balance.

How is the Investment Calculated?

The investment calculator helps you estimate the future value of your investment or the amount you need to contribute regularly to reach a target. It uses the following key variables:

Starting Amount: The initial amount you invest.

Return Rate: The expected rate of return on your investment, typically expressed as an annual or monthly percentage.

Duration: The length of time you plan to invest your money, which could be in years or months.

Contributions: If you're calculating the ending balance, this is the amount you regularly contribute to the investment. Contributions can be monthly or annual.

Target Value: If you're calculating required contributions, this is the target value your investment should reach after the specified duration.

The formula used to calculate the future value (ending balance) of your investment is as follows:

A = P × (1 + r)ⁿ + C × [(1 + r)ⁿ

Where:

A: The ending balance or target value of the investment.

P: The principal or starting amount.

r: The periodic return rate (monthly or annually, based on your input).

n: The total number of periods (months or years, based on your input).

C: The regular contribution amount (either monthly or annual contributions).

- If you're calculating the ending balance, the formula will calculate the future value of the investment based on the starting amount and contributions over time.

- If you're calculating the required contributions to reach a target value, the formula will compute how much you need to contribute regularly to reach your desired goal.

Example: If you invest $5,000 at an annual return rate of 8% for 10 years with no contributions, the calculator will show you how much your investment will grow over time.