How The Calculator Works
Here's a brief explanation of how to use this free compound interest calculator.
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Initial investment: This is the amount you have invested today
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Rate of Return: This is the assumed annual rate of return for your investments. For example, you might assume your investments will return 5% per year on average.
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Term: How long your money will be invested. For example, if you want to know how much you'll have in 10 years and 1 month, you can select that option.
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Compound Frequency: How often your interest compounds.
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Annual inflation: It's important to take inflation into account. A common assumption for inflation is 2% or 3% per year.
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Additional Contributions: How much will you be saving moving forward? For example, you could select $500 per month if that is how much you plan on adding to your investments.
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While the default setting is recommended, this calculator has other features including:
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Initial Investment: Tells you how much you need to invest right now to reach a savings goal in the future.
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Periodic Contribution: Tells you how much you need to save each month or year to achieve a savings goal
Time Length: Tells you how long you should wait to reach a savings goal
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Rate of Return: Tells you how much you need to earn on your investments to reach a savings goal.
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