Calculate the Future Value of your Initial and Periodic Investments with Compound Interest
You have money to invest, whether it is for retirement or for a few years, and you are ready to put a sum now or plan to invest an amount periodically. You are probably wondering at this point how much this will leave you with, right? Saving money is indeed an effort, you need to budget and stay disciplined along the road, so the least you want to know is how rewarding this will be, which can definitely help you to stay motivated.
For most people, it is unclear how much interest income their investment will generate, which turns out to be crucial information. Why? Because there is always an opportunity cost to consider. We often have to make a choice between investing or paying debts, and it can be a difficult one, so it is worth it to find out your investment's future value in order to see more clearly.
Initial Investment and Regular Addition
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 its future value. You 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). Choose the period that matches best your capabilities, some may be better off with bigger amounts at larger intervals while others prefer smaller savings at shorter intervals. It can depend on your type of income (yearly bonus, quarterly commission or weekly salary, for example).
Compound vs. Simple Interest
You can choose the interest rate and the moment it will be added to the principle (monthly, quarterly, semi-annually or yearly), which is also known as compound interest. Compound interest implicates adding the interest income on your investment and reinvest it every time. The other type of interest is simple interest, which is capitalizing only on the amount invested without reinvesting the interest income, but it is not widely used and therefore ignored in this calculator. If your investment gives annual compound interest, 100% of the interest rate will be applied every year and then be reinvested, if it is under a year, a portion of the yearly interest will be capitalized and be reinvested. For example, if the program your investing in says it is monthly compound interest, it means that you will get 1/12 of the yearly interest every month. A shorter compounded period will help you grow your investment faster, because every time they calculate your interest, it is done on the previous principal sum, which includes the recent capitalized interest, and therefore you cumulate more interest on interest!
Please change the suggested values with your own in the blue text boxes.
Our financial calculators start with default values to suggest what to enter typically in each modifiable field, displayed as blue text boxes, in order to simulate a common scenario. Please change those values with your own. To keep track of your changes, the blue box will turn gray after they are modified.
You will also notice that our calculators behave like financial applications and recalculate automatically all values with each change instead of having to click on some extra button or going to a new result page, this is intentional and helps understand the effect of one change with the overall result in a more dynamic and instantaneous manner.
However, charts in our older calculators are not updated automatically, so if there is an "Update" button next to the chart, make sure to click on it after you make a change before you analyze it.