The calculator helps to calculate the effect of using compound interest over a long period of time.
This compound interest calculator helps to answer the question “How much will my final deposit be if my investments regularly bring a certain percentage within a given period.” If you plan, in addition to the investment interest, to regularly replenish the deposit for a fixed amount, enter this amount in the “deposit” field and it will be added to your deposit every period. (If you plan, on the contrary, to withdraw funds at the end of each period, enter the amount of such regular withdrawal with a minus in the “deposit” field).
The investment calculator performs 3 types of calculations:
- Calculate income. By specifying the initial amount, interest rate, and investment period, you will receive the total amount earned as a result of the investment.
- Calculate the amount that needs to be invested in order to get the desired goal at a given interest rate and after a given period.
- Calculate the investment period. By specifying the starting capital and interest rate, you can find the time it will take to reach the goal.
For each calculation, you can set monthly or annual replenishment of your investment.
In the calculations, the interest reinvestment period is assumed – every month.
Investor calculator online
What is an investor calculator for?
Everything is very simple. For example, you have invested money at a certain percentage in a bank, in an HYIP project, in shares, or somewhere else – it is not so important where. The important thing is how much you will earn in a month, two, six months, a year … If the profitability of your investments for a month is still easy and simple to calculate – we take the starting capital, multiply by a percentage, and divide by 100. It’s simple, right? How to calculate your deposit, say, for 14 months or periods (equal periods of time), taking into account the constant reinvestment of funds *? And if you additionally invested or withdrawn funds every month, then in general it turns out to be a very difficult task. It is for this purpose that an online investment calculator was developed, or as it is also called, a compound interest calculator.
Investor Calculator is an online tool that calculates the return on your investment, with or without reinvestment, in a split second.
* Reinvestment – an additional investment of capital in the initial investment portfolio in the form of increasing previously invested investments at the expense of income or profits received from them. In simple terms, it is the process of earning income on the re-invested income from the original asset.
How to use an investment calculator?
- For the correct calculation of the profitability of your investments, all fields of the form must be filled incorrectly.
- Initial deposit – the number of funds that were invested at the very beginning;
- Expected return – interest on the deposit for 1 period (month, quarter, year …);
- Investment period (number of periods) during which it is planned to keep funds on the account, taking into account monthly additions or withdrawals;
- Account replenishment – a period of time (once a month, 2 months, quarter, 4 months, half a year, a year) after which you will add funds to the main deposit or withdraw them. (If not planned, you can not choose)
- Replenishment amount – the number of funds that you are willing to add to your account. If you plan to withdraw funds, then enter a value with a “-” sign (for example -100). It is assumed that the amount will be identical throughout the entire deposit period. (If not planned, leave “0”)
After all the data is entered in the appropriate fields, feel free to click on the “CALCULATE” button, then you get the result in a tabular form, where the number of funds will be clearly displayed at the end of each investment period.
The investor calculator is designed to help you plan your investments. But it does not take into account fluctuations, drawdowns, and risks. The real return on the deposit will depend on your investment strategy, the aggressiveness of your portfolio, and many other indicators.
Why is it needed?
Digital technologies have become part of our life and are actively used in the virtual space. One of such technologies is the investment calculator, or, as it is also called, the “deposit calculator”. It is designed for profitability calculations. In this case, we can talk about a program that can be installed on your computer. But most often, the ability to make calculations related to investments means sites where an online system is located that allows you to perform fairly complex mathematical operations almost instantly. An investment calculator, as a rule, is an indispensable tool if you need to find out exactly what the profit will be from invested finances in a particular product. The same applies to the investment portfolio as a whole, replenishments, taxes, etc.
Believe me, it is very difficult to do such calculations on your own. It is necessary to have not only mathematical skills but also to be aware of the latest tax rates, to take into account the interest on deposits of a particular bank, to understand the financial system and its algorithms. An elementary example from life – a person decided to take advantage of the bank’s offer and place funds on a deposit. Let’s imagine that the conditions mean three years and it is important for the depositor to understand how much money will return to him in these three years. If the desktop calculator starts to make calculations, it will take a certain amount of time. And it’s not a fact that it will work out well. After all, the interest and the amount that must be indicated will change every month. And the investment calculator will do everything in a split second without errors.
Income on income
An online calculator becomes especially valuable for an investor when it comes to the concept of “compound interest”. The principle underlying this concept was admired by Albert Einstein. The scientist called the formula by which compound interest is calculated the greatest discovery of our time. But that’s not the point. In fact, compound interest is reinvestment, which makes it possible to receive higher income and profits than a simple investment.
Let us explain: compound interest is the regular replenishment of the initial investment portfolio with additional funds. Additional funds are the amount of investment income already received. It turns out that a person earned and immediately invested this money, earned-invested, earned-invested, and in a circle. As a result, the size of investments is constantly growing, and with it, the income and profit accrued on the invested amount grow.
What should be remembered and taken into account here? A compound interest deposit does not provide for the ability to withdraw the income received. The entire amount can be received only at the end of the term of the deposit. Nevertheless, investments with compound interest are certainly more profitable. However, a significant number of online calculators for investors make it possible to perform simple operations to calculate their income. Not all systems have the function to take into account compound interest. Therefore, choose the system carefully.
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