Investment Calculator (2022)

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The Investment Calculator can be used to calculate a specific parameter for an investment plan. The tabs represent the desired parameter to be found. For example, to calculate the return rate needed to reach an investment goal with particular inputs, click the 'Return Rate' tab.

Investment Calculator (1)

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End Balance$198,290.40
Starting Amount$20,000.00
Total Contributions$120,000.00
Total Interest$58,290.40

Balance Accumulation Graph


RelatedInterest Calculator | Average Return Calculator | ROI Calculator

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Investing is the act of using money to make more money. The Investment Calculator can help determine one of many different variables concerning investments with a fixed rate of return.

Variables involved

For any typical financial investment, there are four crucial elements that make up the investment.

  • Return rate – For many investors, this is what matters most. On the surface, it appears as a plain percentage, but it is the cold, hard number used to compare the attractiveness of various sorts of financial investments.
  • Starting amount – Sometimes called the principal, this is the amount apparent at the inception of the investment. In practical investing terms, it can be a large amount saved up for a home, an inheritance, or the purchase price of a quantity of gold.
  • End amount – The desired amount at the end of the life of the investment.
  • Investment length – The length of the life of the investment. Generally, the longer the investment, the riskier it becomes due to the unforeseeable future. Normally, the more periods involved in an investment, the more compounding of return is accrued and the greater the rewards.
  • Additional contribution – Commonly referred to as annuity payment in financial jargon, investments can be made without them. However, any additional contributions during the life of an investment will result in a more accrued return and a higher end value.

Different Types of Investments

Our Investment Calculator can be used for almost any investment opportunity that can be simplified to the variables above. The following is a list of some common investments. The investment options available are far beyond what was listed.

CDs

A simple example of a type of investment that can be used with the calculator is a certificate of deposit, or CD, which is available at most banks. A CD is a low-risk investment. In the U.S., most banks are insured by Federal Deposit Insurance Corporation (FDIC), a U.S. government agency. This means the CD is guaranteed by FDIC up to a certain amount. It pays a fixed interest rate for a specified amount of time, giving an easy-to-determine rate of return and investment length. Normally, the longer that money is left in a CD, the higher the rate of interest received. Other low-risk investments of this type include savings accounts and money market accounts, which pay relatively low rates of interest. We have a CD Calculator for investments involving CDs.

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Bonds

Risk is a key factor when making bond investments. In general, premiums must be paid for greater risks. For example, buying the bonds or debt of some companies rated at a risky level by the agencies that determine levels of risk in corporate debt (Moody's, Fitch, Standard & Poor's) will earn a relatively high rate of interest, but there is always a risk that these companies might go out of business, possibly resulting in losses on investments.

Buying bonds from companies that are highly rated for being low-risk by the mentioned agencies is much safer, but this earns a lower rate of interest. Bonds can be bought for the short or long term.

Short-term bond investors want to buy a bond when its price is low and sell it when its price has risen, rather than holding the bond to maturity. Bond prices tend to drop as interest rates rise, and they typically rise when interest rates fall. Within different parts of the bond market, differences in supply and demand can also generate short-term trading opportunities.

A conservative approach to bond investing is to hold them until maturity. This way, interest payments become available, usually twice a year, and owners receive the face value of the bond at maturity. By following a long-term bond-buying strategy, it is not a requirement to be too concerned about the impact of interest rates on a bond's price or market value. If interest rates rise and the market value of bonds change, the strategy shouldn't change unless there is a decision to sell.

One very special kind of bond is the United States Treasury inflation-protected securities, known as TIPS. TIPS offers an effective way to handle the risk of inflation. They also provide a risk-free return guaranteed by the U.S. government. For this reason, they are a very popular investment, although the return is relatively low compared to other fixed-income investments. TIPS are guaranteed to keep pace with inflation as defined by the Consumer Price Index (CPI). This is what makes them unique and characterizes their behavior. Please visit our Inflation Calculator for more information about inflation or TIPS.

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Stocks

Equity or stocks are popular forms of investments. While they are not fixed-interest investments, they are one of the most important forms of investments for both institutional and private investors.

A stock is a share, literally a percentage of ownership, in a company. It permits a partial owner of a public company to share in its profits, and shareholders receive funds in the form of dividends for as long as the shares are held (and the company pays dividends). Most stocks are traded on exchanges, and many investors purchase stocks with the intent of buying them at a low price and selling them at a higher one (hopefully). Many investors also prefer to invest in mutual funds or other types of stock funds, which group stocks together. These funds are normally managed by a finance manager or firm. The investor pays a small fee called a "load" for the privilege of working with the manager or firm. Another kind of stock fund is the exchange-traded fund (ETF), which tracks an index, sector, commodity, or other assets. An ETF fund can be purchased or sold on a stock exchange the same way as a regular stock. An ETF can be structured to track anything, such as the S&P 500 index, certain types of real estate, commodities, bonds, or other assets.

Real Estate

Another popular investment type is real estate. A popular form of investment in real estate is to buy houses or apartments. The owner can then choose to sell them (commonly called flipping) or rent them out in the meantime to maybe sell in the future at a more opportune time. Please consult our comprehensive Rental Property Calculator for more information or to do calculations involving rental properties. Also, land can be bought and made more valuable through improvements. Understandably, not everyone wants to get their hands dirty, and there exist more passive forms of real estate investing such as Real Estate Investment Trusts (REITs), which is a company or fund that owns or finances income-producing real estate. Real estate investing is usually contingent upon values going up, and there can be many reasons as to why they appreciate; examples include gentrification, an increase in the development of surrounding areas, or even certain global affairs.

Real estate investing takes on many different forms. Click here to find all our relevant real estate calculators.

Commodities

Last but not least are commodities. These can range from precious metals like gold and silver, to useful commodities like oil and gas. Investment in gold is complex, as the price of it is not determined by any industrial usage but by the fact that it is valuable due to being a finite resource. It is common for investors to hold gold, particularly in times of financial uncertainty. When there is a war or crisis, investors tend to buy gold and drive the price up. Investing in silver, on the other hand, is very largely determined by the demand for that commodity in photovoltaics, the automobile industry, and other practical uses. Oil is a very popular investment, and demand for oil is strong as the need for gasoline is always considerable. Oil is traded around the world on spot markets, public financial markets where commodities are traded for immediate delivery, and its price goes up and down depending on the state of the global economy. Investment in commodities like gas, on the other hand, is usually made through futures exchanges, of which the largest in the U.S. is the CBOT in Chicago. Futures exchanges trade options on quantities of gas and other commodities before delivery. A private investor can trade into futures and then trade out, always avoiding the terminal delivery point.

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Although the vastly different types of investments listed above (among many others) can be calculated using our Investment Calculator, the real difficulty is trying to arrive at the correct value for each variable. For instance, it is feasible to use either the recent historical average return rates of similarly sold homes or a rate based on future forecasts as the "Return Rate" variable for the investment calculation of a particular house. It is also just as feasible to include all capital expenditures or only a particular stream of cash flows of the purchase of a factory as inputs for "Additional Contribution." Due to this difficulty, there really is no "right" way to arrive at accurate calculations, and results should be taken with a grain of salt. For more precise and detailed calculations, it may be worthwhile to first check out our other financial calculators to see if there is a specific calculator developed for a more specific use before using this Investment Calculator.

FAQs

How can I calculate of investment? ›

You may calculate the return on investment using the formula: ROI = Net Profit / Cost of the investment * 100 If you are an investor, the ROI shows you the profitability of your investments. If you invest your money in mutual funds, the return on investment shows you the gain from your mutual fund schemes.

How much money will I have if I invest 1000 a month? ›

Based on the $1,000 per month rule, an investor needs savings of $240,000 to withdraw $1K per month for 20 years during retirement.

How much will I have if I invest 500 a month for 30 years? ›

How much will $500 a month turn into? At the beginning of this article, I told you investing $500 a month with an average return of 10% per year will result in a portfolio worth $1.14 million after 30 years.

What will 10000 be worth in 20 years? ›

With that, you could expect your $10,000 investment to grow to $34,000 in 20 years.

How can I grow my money fast? ›

If you're younger and your income limits allow, open up a Roth IRA. Invest in mutual funds and ETFs. Make sure you have enough cash in your emergency fund.
...
Earn Much, Much More
  1. Work Hard Now. ...
  2. Invest in Your Education. ...
  3. Invest in Yourself and Your Marketing. ...
  4. Venture into Entrepreneurship. ...
  5. Try Real Estate.
Sep 26, 2019

How do I start investing? ›

7 Steps to Start Investing
  1. 1 1 minute. Save and invest. ...
  2. Step 2 3 minutes. Get ready to invest. ...
  3. Step 3 4 minutes. Create your investment strategy. ...
  4. Step 4 4 minutes. Understand different types of investments. ...
  5. Step 5 4 minutes. Know investment account types. ...
  6. Step 6 3 minutes. Choose how to invest. ...
  7. Step 7 3 minutes. Stay invested.

Can I live off interest on a million dollars? ›

The historical S&P average annualized returns have been 9.2%. So investing $1,000,000 in the stock market will get you $96,352 in interest in a year. This is enough to live on for most people.

Is investing 1k a month good? ›

If you start saving $1000 a month at age 20 will grow to $1.6 million when you retire in 47 years. For people starting saving at that age, the monthly payments add up to $560,000: the early start combined with the estimated 4% over the years means that their investments skyrocketed nearly $1.

Is it worth investing 100 a month? ›

Key Takeaways. Investing just $100 a month over a period of years can be a lucrative strategy to grow your wealth over time. Doing so allows for the benefit of compounding returns, where gains build off of previous gains.

SIP calculator alone is not sufficient and shouldn't be used to develop or implement an investment strategy.. SIP calculator alone is not sufficient and shouldn't be used to develop or implement an investment strategy.. SIP does not assure a profit or guarantee protection against loss in a declining market. . SIP Calculator is designed to assist you in determining the appropriate amount.. SIP calculator alone is not sufficient and shouldn't be used to develop or implement an investment strategy.. SIP does not assure a profit or guarantee protection against loss in a declining market. . SIP Calculator is designed to assist you in determining the appropriate amount.. SIP calculator alone is not sufficient and shouldn't be used to develop or implement an investment strategy.. SIP does not assure a profit or guarantee protection against loss in a declining market. . SIP Calculator is designed to assist you in determining the appropriate amount.. SIP calculator alone is not sufficient and shouldn't be used to develop or implement an investment strategy.. SIP does not assure a profit or guarantee protection against loss in a declining market. . SIP Calculator is designed to assist you in determining the appropriate amount.. SIP Top-up SIP Top-up Facility provides an option to increase your SIP installment amount at pre-defined intervals, in turn boosting your investments.. SIP Top-up would increase the value of your SIP investment from ₹12,00,000 to and your Investment is expected to reach instead of at the end of 10 Years.. SIP does not assure a profit or guarantee protection against loss in a declining market.. SIP Calculator is designed to assist you in determining the appropriate amount.. SIP does not assure a profit or guarantee protection against loss in a declining market. . SIP Calculator is designed to assist you in determining the appropriate amount.

A term insurance premium calculator is a freely available online tool that helps calculate the amount of premium that you need to pay for the desired insurance coverage and policy benefits.. A term insurance premium calculator takes into consideration various factors such as our age, current income, debts, marital status, health conditions and the number of dependents to help you choose an insurance plan that best fit your needs and life goals.. A term insurance premium calculator provides the required premium amount payable for the selected insurance coverage amount, based on the following factors:. A term insurance premium calculator gives you an estimate of the life cover amount that helps cover your liabilities and your family's financial needs, and the premium payable under the insurance policy.. Using a term insurance premium plan calculator, you can opt for the highest possible life cover amount that suits your budget.. When you purchase a life insurance plan, the insurance company levies a charge to cover the expenses for providing insurance protection upon death.. Effectiveness of Max Life Term Plans The primary purpose of life insurance, especially term insurance cover, is to provide all-around financial security to your loved ones, helping them to take care of their lifestyle expenses and goals.. ^ InstaClaim TM is available for all versions of Max Life Smart Secure Plus Plan (UIN: 104N118V04)#Mandatory Documents: Original policy document, Original / attested copy of death certificate issued by local municipal authority, Death claim application form(Form A), NEFT mandate form attested by bank authorities along with a cancelled cheque or bank account passbook along with nominee's photo identity proof, Discharge/ Death Summary attested by hospital authorities or FIR & post mortem report /viscera report (in case of accidental death); Mandatory Documents : > Original policy document > Original/attested copy of death certificate issued by local municipal authority > Death claim application form (Form A) > NEFT mandate form attested by bank authorities along with a cancelled cheque or bank account passbook along with nominee's photo identity proof > Discharge/Death summary attested by hospital authorities or FIR & Post Mortem Report/viscera report (in case of accidental death)

ROI is calculated by subtracting the initial cost of the investment from its final value, then dividing this new number by the cost of the investment, and, finally, multiplying it by 100.. ROI. =. Net Return on Investment. Cost of Investment. ×. 100. %. \begin{aligned}&\text{ROI} = \frac { \text{Net Return on Investment} }{ \text { Cost of Investment} } \times 100\% \\\end{aligned}. ​ROI= Cost of InvestmentNet Return on Investment​×100%​. ROI. =. FVI. −. IVI. Cost of Investment. ×. 100. %. where:. FVI. =. Final value of investment. IVI. =. Initial value of investment. \begin{aligned}&\text{ROI} = \frac { \text{FVI} - \text{IVI} }{ \text{Cost of Investment} } \times 100\% \\&\textbf{where:} \\&\text{FVI} = \text{Final value of investment} \\&\text{IVI} = \text{Initial value of investment} \\\end{aligned}. ​ROI=Cost of InvestmentFVI−IVI​×100%where:FVI=Final value of investmentIVI=Initial value of investment​. IVI. =. $. 10. ,. 000. +. $. 50. =. $. 10. ,. 050. FVI. =. $. 12. ,. 500. +. $. 500. −. $. 75. FVI. =. $. 12. ,. 925. ROI. =. $. 12. ,. 925. −. $. 10. ,. 050. $. 10. ,. 050. ×. 100. ROI. =. 28.75. %. where:. IVI. =. Initial value (cost) of investment. FVI. =. Final value of investment. \begin{aligned}&\text{IVI} = \$10,000 + \$50 = \$10,050 \\&\text{FVI} = \$12,500 + \$500 - \$75 \\&\phantom{ \text{FVI} } = \$12,925 \\&\text{ROI} = \frac { \$12,925 - \$10,050 }{ \$10,050} \times100 \\&\phantom{ \text{ROI} } = 28.75\% \\&\textbf{where:}\\&\text{IVI} = \text{Initial value (cost) of investment} \\&\text{FVI} = \text{Final value of investment}\end{aligned}. ​IVI=$10,000+$50=$10,050FVI=$12,500+$500−$75FVI=$12,925ROI=$10,050$12,925−$10,050​×100ROI=28.75%where:IVI=Initial value (cost) of investmentFVI=Final value of investment​. Annualized ROI. =. [. (. 1. +. ROI. ). 1. /. n. −. 1. ]. ×. 100. %. where:. n. =. Number of years investment is held. \begin{aligned}&\text{Annualized ROI} = \big [ ( 1 + \text{ROI} ) ^ {1/n} - 1 \big ] \times100\% \\&\textbf{where:}\\&n = \text{Number of years investment is held} \\\end{aligned}. ​Annualized ROI=[(1+ROI)1/n−1]×100%where:n=Number of years investment is held​. The simple annual average ROI of 10%–which was obtained by dividing ROI by the holding period of five years–is only a rough approximation of annualized ROI.. The longer the time period, the bigger the difference between the approximate annual average ROI, which is calculated by dividing the ROI by the holding period in this scenario, and annualized ROI.. Annualized ROI is especially useful when comparing returns between various investments or evaluating different investments.. Assume that an investment in stock X generated an ROI of 50% over five years, while an investment in stock Y returned 30% over three years.. AROI. x. =. [. (. 1. +. 0.50. ). 1. /. 5. −. 1. ]. ×. 100. =. 8.45. %. AROI. y. =. [. (. 1. +. 0.30. ). 1. /. 3. −. 1. ]. ×. 100. =. 9.14. %. where:. AROI. x. =. Annualized ROI for stock X. AROI. y. =. Annualized ROI for stock Y. \begin{aligned}&\text{AROI}_x = \big [ ( 1 + 0.50 ) ^ { 1/5 } -1 \big ] \times100 = 8.45\% \\&\text{AROI}_y = \big [ (1 + 0.30 ) ^ {1/3 } - 1 \big ] \times100 =9.14\% \\&\textbf{where:}\\&\text{AROI}_x = \text{Annualized ROI for stock X} \\&\text{AROI}_y = \text{Annualized ROI for stock Y} \\\end{aligned}. ​AROIx​=[(1+0.50)1/5−1]×100=8.45%AROIy​=[(1+0.30)1/3−1]×100=9.14%where:AROIx​=Annualized ROI for stock XAROIy​=Annualized ROI for stock Y​. For example, assume investment X generates an ROI of 25%, while investment Y produces an ROI of 15%.. It's possible that the 25% ROI from investment X was generated over a period of five years, while the 15% ROI from investment Y was generated in only one year.. How to Calculate ROI in Excel Return on investment, or ROI, is a straightforward measurement of the bottom line.. It can be used to calculate the actual returns on an investment, to project the potential return on a new investment, or to compare the potential returns on a number of investment alternatives.. The return on investment (ROI) formula remains the same whether you're evaluating the performance of a single stock or considering the potential profit of a real estate investment.

Loans such as balloon mortgages allow you make affordable monthly payments within a short term.. What are Balloon Mortgages?. Balloon loans are also financing options offered in residential mortgages and car loans.. Borrowers are usually required to make interest-only payments throughout the short term, after which the balloon payment is due.. Borrowers must make sure to repay the lender with a large sum by the end of the term.. When it comes to commercial mortgages, hard money loans and bridge financing both have short terms (1 year up to 3 years).. Most residential mortgages were commonly structured in 5-year balloon mortgages, while others were 11 to 12-year fully amortizing mortgages.. Borrowers usually make monthly interest-only payments , after which they pay the remaining balance with a lump sum amount once the term ends.. You must make the balloon payment by the end of the 3-year term.. If you cannot make the balloon payment, another option is to sell your asset.. Balloon payments are often used in commercial mortgages.. If you do not intend to sell the property, you can refinance your loan to a longer traditional commercial mortgage with a manageable monthly payment.. ProsConsIf you’re making interest-only payments, your monthly payments will be lower compared to traditional amortizing mortgages You must pay a large lump sum amount by the end of the loanThe loan term is short, which means you are not tied to the property in case you need to leave or sell it within a few yearsThe short loan term gives you a limited time frame to raise funds for the balloon paymentCommercial loans such as bridge loans and hard money loans can be obtained within a short time, they do not require months to closeIf you took a bridge loan or hard money loan, you are pressured to make profits to make the balloon payment, or find a lender that will refinance your loan to avoid defaultYou don’t feel the impact of high interest rates when monthly payments are not that highIf your property’s market value declines, you won’t have enough funds to completely cover your balloon paymentYou have the option to refinance your mortgage, this extends your loan term if you cannot make the balloon paymentIf you are unable to make the balloon payment, refinance or sell the property, you risk losing it to foreclosure

It is entirely possible, in fact, for the cash flow generated from a rental property to pay off monthly mortgage operations, and then some.. Here are eight crucial factors for your next rental property cash flow analysis:. Income And Cash Flow: Income refers to the amount of rental income generated, while cash flow represents the net amount of cash being transferred into and out of a property.. Ideal Tenants: Tenants are where most of your income is generated when investing in rental properties, which is why the right tenants are crucial to your success as a real estate investor.. A perfect vacancy rate would be zero percent, meaning the property generates rental income throughout the year.. Rental Strategy: Decide whether you are focusing on short- or long-term rental properties, which will influence the types of homes and areas you should invest in.. Total Cash Investment: This refers to the number of cash investors put towards the property, including the down payment and any renovation costs.. Closing costs typically range from two to five percent of the total purchase price.. As you consider the ROI on a rental property, remember to pay careful attention to each variable you consider, such as the vacancy rate, operating costs, and more.. As its name suggests, investors want to see the investment generate at least 2.0% of the asset’s purchase price each month in cash flow.. The higher the estimated cash flow, the more an investor stands to make from a given property.. Our new online real estate class can help you learn how to invest in rental properties that can help increase your monthly cash flow.

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