About Investment Calculator

How much are you expecting to gain against investing a certain amount? If you want to ensure that your investment goals are met, then you must make the entire evaluation through an investment calculator. This tool is equally helpful for beginners and experienced investors, as they can use it to figure out how much their starting investment will grow after a specific time. The investment growth calculator helps you analyze how much your initial investment will accumulate after evaluating your entered interest rate and any additional contribution you’re planning to make. It’s a free-of-cost tool that offers all investors an easy and accurate way to calculate investment return in no time.

Terms involved in Investment

You need to understand the terms involved in investment, as without having a clear idea, you’ll be reluctant to take the first step in this journey. Here are the terminologies that you must have a clear idea of before you make any investment.

Starting Amount
The starting amount is the initial money you are looking forward to investing. It’s the actual risk that you are willing to take to grow your saved money. Whether your starting amount is big or small, this free investment calculator doesn’t have an issue, as it just focuses on delivering precise results to all users.

Contributions
Contributions are the additional sums of money you add up to your investment over time. Our investment growth calculator takes this factor into account, as it is a critical element that influences the growth of your investment.

Rate of Return on Investment
The rate of return or interest rate is the profit you expect to earn on your investment. It is expressed in terms of percentage. The rate of return calculator shows percentages to reach the target.

Years to Accumulate
The years to accumulate is the time for which you are willing to store your investment and expect it to grow. During this time, you don’t withdraw your initial investment or sell it.

End Amount
The end amount is the accumulated money you will have after the completion of your decided investment length. The investment calculator helps you calculate investment growth after considering your rate of return and additional contributions.

How to Use the Investment Calculator?

The process of using the investment return calculator on this platform doesn’t involve any intricate procedures. The following steps can allow you to calculate investment return:

Access the online investment calculator.
Enter starting amount, years to accumulate, additional contribution, and interest rate in the given fields.
Click the Calculate Investment button to initiate the process.
Instantly get to know how much your investment will be worth instantaneously.

How Investing Works?

Investing refers to using the surplus money you have besides your expenses and putting it to grow for you. If you make smart investing decisions, your investment can result in modest profits that can transform into larger nest eggs over time.

In an economy, individuals have multiple choices for making investments. Stocks and bonds are the most popular among different types of investments. The money you invest in stocks or bonds is used by companies or governments, respectively.

In return for this investment, you can earn compound interest. People usually make investments to achieve future aims and objectives. It can be a long-term investment to buy a house or accumulate reserves to support the education of a kid.

Different Types of Investments

Our investment calculator can be used for any investment opportunity. Let’s take you through various investment opportunities to help you achieve your goals.

CDs

The CD is the abbreviation for Certificate of Deposit, and it is a kind of savings account where an investor keeps an amount for a certain period and earns a fixed interest rate. When investors redeem the certificates of deposit, they get back their original amount plus the interest they earned.

Bonds The bonds are issued by companies and governments to investors to raise money. If you purchase a bond, the amount you’ve paid for it will be considered a loan amount to the bond issuer. The value of the bond is returned to individuals on a specific date. During this time, you’ll receive a fixed interest against your investment. Due to the backing of the government, bonds are considered safe and gain the attention of many investors.

Stocks Stocks, also known as shares, are listed on the stock market in which a company offers part ownership to the general public. It’s a popular form of capital-raising tactic for growing a company. For investing in stocks, you should know the stock market and how the companies are performing in it. Various factors need to be considered for investing in stocks so that you make investments in the companies that will grow, and their share price will also increase. In return for investing in stocks, the shareholders receive a dividend. However, if a company doesn’t make a profit, the dividend won’t be paid.

Real Estate Investment in real estate can be made in various forms. Purchasing and renting houses out is a popular type of real estate investing. An investor purchases a property and rents it out; the received rent is actually the profit being made against this investment.

Commodities The raw material and agricultural products are called commodities. You can make your investment in a commodity fund to trade these resources. The principles of demand and supply drive the commodity market. The most popular form of commodities bought and sold to earn profit include precious metals, such as gold and silver.

Mutual Funds Mutual funds are a type of investment in which different investors are authorized to pool their money and invest in something together. They are professionally managed investment portfolios that take multiple investors to purchase securities collectively. Different types of mutual funds including equity mutual funds, asset allocation mutual funds, commodity mutual funds, target date mutual funds, and many more can be calculated using our investment calculator.