Investment Calculator

How to Use the Investment Calculator

1. Enter Your Investment Details

• Initial Investment: Enter your starting amount (e.g., $5,000)

• Monthly Contribution: Add regular deposits (e.g., $200/month)

• Annual Interest Rate: Expected yearly return (e.g., 7% for stock market average)

• Investment Period: Number of years you’ll invest (e.g., 10 years)

2. Click “Calculate”

• See your projected future value based on compound interest

• Example: $5,000+$200/month at 7% for 10 years ≈ $42,802

3. Experiment with Different Scenarios

• Try increasing monthly contributions or extending the period

• See how small changes can significantly grow your money over time

💡 Key Financial Concepts

✔ Compound Interest: Earnings generate their own earnings (powerful over time)
✔ Rule of 72: Divide 72 by your interest rate to estimate doubling time (7% ≈ 10.3 years)
✔ Monthly vs. Lump Sum: Regular contributions often outperform one-time investments

📊 Example Use Cases

• Retirement Planning: “If I invest $500/month for 30 years at 8%…”

• Saving for a House: “How much will $10,000growin5yearswithextra$1,000/month?”

• College Fund: “Starting with $2,000,adding$100/month for 18 years at 6%…”

⚠️ Important Notes

• Estimates only – actual returns vary with market conditions

• Doesn’t account for taxes or inflation

• Higher risk investments typically offer higher potential returns