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Investment Growth Definition
The Investment Growth Calculator is great for anyone who is looking to make a short, medium or long term financial investment. While these investments are very common, it can often be difficult to calculate the amount of money that a person stands to make from one of them.
With this calculator, it is effortless to test out various amounts of investment and to see what the end result will be. There is also an option to get the investment growth calculator added to a website, which would be a great option for anyone who has a finance/investments related site.
This calculator is fairly simple and straightforward. There are four options that can be manipulated as desired: initial amount, annual contribution, annual interest rate, and number of years.
The initial amount pertains to how much you will invest to start off with. This figure will probably be between 20% to 60% of the savings that are in your bank account/stockbroker account. As an example, this figure can be set to $20,000.
The annual contribution refers to how much money will be placed into the account at the end of each year. Calculate that amount as a percentage of how much you expect to earn, and how much you will be able to save. If you do not plan on saving very much every year, you can set the annual contribution to $5,000.
The annual interest rate you will gain on the investment account will probably be specified by the financial institution. For this example, we can set the interest rate to 2% over the course of a year. Of course, that rate will probably be much higher.
Length of Investment:
If you are going to make this a long term investment, you can set the “number of years” portion to 20 years. This means that you will not withdraw any money from the account for 20 years, which would make it similar to a retirement account.
With all of those variables set, you will press calculate and get a total amount of $151,205.80. This means that with a $20,000 initial deposit, a 2% interest rate, and a $5,000 annual contribution, you will have a savings fund of $151,000 after 20 years.
Let's be honest - sometimes the best investment growth calculator is the one that is easy to use and doesn't require us to even know what the investment growth formula is in the first place! But if you want to know the exact formula for calculating investment growth then please check out the "Formula" box above.
Add a Free Investment Growth Calculator Widget to Your Site!
You can get a free online investment growth calculator for your website and you don't even have to download the investment growth calculator - you can just copy and paste! The investment growth calculator exactly as you see it above is 100% free for you to use. If you want to customize the colors, size, and more to better fit your site, then pricing starts at just $29.99 for a one time purchase. Click the "Customize" button above to learn more!