The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. For example, $100,000 today that is growing at a rate of 7% each year for the next ten years, would have a future value of $196,715.14.ĭisclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. This calculator grows the Present Value of the Investment by the Interest Rate specified. This is the future value of the investment. Note that the time value used for the Interest Rate (10% per year) must be consistent with the Number of Time Periods (years). In this example, the Interest Rate would be 7%. For example, let's say you have $100,000 today that is growing at a rate of 7% each year for the next ten years. This is the rate of interest at which the investment will grow over time. Note that the time period used in this section of the calculator must be the same time period used for the Interest Rate. In this example, the Number of Time Periods would be 10. This is the number of payment periods for the investment. In this example, the present value of the investment would be $100,000.
This is the present value of the investment. Therefore, a shorter compounded period will help you grow your investment faster because the interest calculation is done on the recent capitalized amount which will include the added interest income.Return on Investment Calculator Time Value of Money Calculator Present Value Calculator Net Present Value Calculator Perpetuity and Growing Perpetuity Calculator Weighted Average Cost of Capital Calculator Return on Invested Capital Calculator For example, if the program you're investing in says it is monthly compound interest, it means that you will get 1/12 of the yearly interest income every month. If the interest income is capitalized multiple times a year, then a portion of the yearly interest will be capitalized and reinvested. If your investment gives an annual compound interest, 100% of the interest income will be cashed yearly and then reinvested. Simple interest is not widely used and therefore ignored in this calculator. The other type of interest is simple interest, which capitalizes only the amount invested and doesn’t reinvest the interest income. Compound interest implicates adding the interest income to your investment, and then reinvesting it, every time, as opposed to withdrawing it.
You can choose the interest rate and the moment its generated income will be cashed (monthly, quarterly, semi-annually or yearly), which is also known as compound interest.
This can depend on your type of income yearly bonus, quarterly commission or weekly salary, for example. Simply insert the amount you are ready to invest now and/or the additional amount you plan to inject periodically (weekly, bi-weekly, monthly, quarterly, semi-annually or yearly) and then choose the period that best matches your situation (some may be better off with bigger amounts at larger intervals while others might prefer smaller amounts at shorter intervals). Whether you have a specific goal or simply want to know how much interest you will gain, this investment calculator will help you find out the future value of your investment.
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