| Future value: | 36,387.93 |
| Total Invested amount: | 20,000.00 |
| Total Additional Contribution: | 0.00 |
| Total amount gain: | 16,387.93 |
| Year | Year End Value | Interest Earned | This Years Contributions |
|---|---|---|---|
| 0 | 20,000.00 | 0.00 | 20,000.00 |
| 1 | 21,233.56 | 1,233.56 | 20,000.00 |
| 2 | 22,543.20 | 1,309.64 | 20,000.00 |
| 3 | 23,933.61 | 1,390.41 | 20,000.00 |
| 4 | 25,409.78 | 1,476.17 | 20,000.00 |
| 5 | 26,977.00 | 1,567.22 | 20,000.00 |
| 6 | 28,640.89 | 1,663.88 | 20,000.00 |
| 7 | 30,407.39 | 1,766.51 | 20,000.00 |
| 8 | 32,282.85 | 1,875.46 | 20,000.00 |
| 9 | 34,273.99 | 1,991.14 | 20,000.00 |
| 10 | 36,387.93 | 2,113.94 | 20,000.00 |
On this sample calculation we are going to find out on how will be the return of your 20,000.00 investment.
On this computation, you will get a total of 36,387.93 when the maturity comes, with 6% annual interest compounded 12 times in a year.
Here's how we derived the Future Value of your investment
Future Value of Initial Investment: The formula used for the calculation is the formula for the Future Value of an investment compounded multiple times a year.
Formula: FV = PV * (1 + r/n)^(nt)
Where:
Here's how we derived the Future Value of your investment if there's an additional contribution.
Future Value of Additional Contributions: This calculation assumes that additional contributions are made regularly (every week, month, quarter, etc). The formula for this is a bit more complex, and it's called the Future Value of a series (an annuity).
Formula: FV = P * [(1 + r/n)^(nt) - 1] / (r/n)
Where:
The total future value is the sum of the future values of the initial investment and the additional contributions.
We calculates the total amount invested (which is the initial amount plus all the additional contributions), the total additional contributions and the total gain (which is the future value minus the total amount invested).
This Investment Return Calculator is a tool designed to provide investors or financial investors with an estimation of their potential returns on investments based on certain input parameters.
This investment return calculator takes into account the initial investment amount, additional contributions and contribution frequency if there's any, rate of return, duration of investment, and compounding frequency to compute the estimated future value of an investment.
Here, you enter your starting investment amount and option to add Additional Contribution.
Check this box if you plan to make additional contributions to your investment. If checked, enter the amount and frequency of the additional contributions.
Here, you input the expected annual return rate (in percentage) on your investment.
This is where you indicate the length of time (in years) that the investment will be held.
Select how often you want your investment to compound.
Click this to compute the future value of your investment, total invested amount, total additional contribution, and total amount gain.
Click to clear all inputs and results.
This allows you to create a shareable URL that displays your input parameters and the calculated results.
This is where the calculated results are displayed.
This provides a year-by-year breakdown of the future value, interest earned, and total contributions.
This app calculates the future value of your investment based on various parameters you entered like the initial investment amount, additional contributions, if there's any and then the rate of return which is the percetage of interest on a yearly basis, duration of investment, and compounding frequency.
The app also provides a detailed breakdown table of the future value of your investment, total invested amount, total additional contributions, and total gain over the period of investment.
The initial investment amount refers to the initial amount of money you are investing.
Additional Contribution refers to the extra amount you want to contribute to your investment apart from the initial investment. You can choose to contribute monthly, semi-annually, or annually.
The Rate of Return is the gain or loss made on an investment over a specified period of time, expressed as a percentage increase over the initial investment cost.
This is the length of time in years that you plan to keep your money invested. In other terms this is the "Maturity" year of your investment.
Compounding frequency refers to the number of times compounding will occur during a period. It can be monthly, quarterly, semi-annually, or annually. The more frequently interest is compounded, the greater the overall return will be.
You can share or save your result by clicking the "Share Result" button. This will create a URL containing your inputs and results that can be shared. So, the next time you visit this URL all your entered details will be preloaded together with the yearly breakdown.
The total invested amount is the sum of your initial investment and the total additional contributions made over the investment period, if you have not entered any additional contribution, then only your initial investment will be calculated. For more detailed info about this refer to the formula above.
The total gain is your total money earned from those interests. It is the difference between the future value of your investment and the total amount you've invested (initial investment plus total additional contributions). For more detailed info about this refer to the formula above.
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