This calculator lets you make a side-by-side comparison of three different future value scenarios. Use this calculator to project the future value of your investments or retirement accounts. You can enter the existing value of an investment along with ongoing regular deposits, whether they are made monthly or annually. These periodic deposits can be increased each year to reflect inflation.
Single Deposit Amount: Enter the amount of your initial investment. If you are not making a single initial investment, but will only be investing bit by bit at a steady rate, enter "0."
Return: Enter an annual rate of return as a percentage. What annual rate of return should you use if this is a variable rate (unlike, say, a CD)? You can either use your most recent annual rate of return or use the historical rate of return on the investment (which your investment manager should be able to tell you). Obviously, you should use the rate that is most likely to be accurate in the future. If you aren't sure which is more accurate, be conservative and use the lower rate.
Years: Enter the number of years until you cash out your investment. In reality, you may very well not cash out of your investment all at once like this, but rather take out your money slowly. But for the sake of comparing investments, it's much easier just to pretend that you will cash out all at once.
Periodic Deposit Amount: Enter the amount you will be depositing either each year or each month. If you will not deposit any more money after your initial single deposit, enter "o."
Indexed At: Enter the percentage at which you will increase your deposits. You may want to increase your deposit amounts in order to keep up with inflation, or increases in your income. Of course, it can be hard to decide in advance how much you will increase your deposits. Two percent is not a bad guess.
Type: Enter monthly or yearly depending on whether you will make the periodic deposit once a month or once a year.
When: Enter End or Beginning, depending on whether you will make the periodic deposit at the end or beginning of the month or year. Obviously, if you deposit at the beginning, your deposit will have that much longer to accrue interest.