Investment Compounding Calculator
Note: When you use the investment calculator on your phone, use horizontal view for best results.
Understanding the Investment Calculator
Use the investment calculator to better understand how your investments will grow over time. Change the amounts to see what a difference more time, a greater percentage return, or your initial investment amount will make.
When you press “Submit” it will reload the page. You may then scroll down to see your results including the growth of each year and your total at the bottom.
Invested Amount: Your Initial Investment
In this box you should put the amount of money that you plan to invest when you first open your investment account. This can be as little as the amount that you plan to invest monthly, or possibly a large savings amount that you plan to begin your investment with.
Annual Contribution (Optional)
This is the amount of money that you plan to contribute to your investment account each year. If you plan to contribute $500 each month, then you would put the total for the year, which is $6,000.
Interest Rate: % Return on investment (Interest)
In this box you should put the percentage that you believe your investments will return each year. For example, if your investments are in the S&P 500 and you have looked at their history of returns, you would know that a safe number here is between 8 and 10%. If you don’t know, a very conservative number is usually 8%, but cannot be guaranteed.
Number of years
In this box you want to put the number of years that you will be investing and that your investments will be growing.
Compounding percentage: % of reinvested profits
Generally speaking, you should always have your profits automatically reinvested. I recommend leaving this at 100%.