Investment Calculator

Calculate investment returns, compound growth, and plan your financial future with various investment scenarios.

Optional: Adjust returns for inflation
Optional: Consider tax impact on returns
Optional: Increase contributions annually

Investment Information

Understanding investment calculations helps you make informed decisions about your financial future.

Key Investment Concepts:

  • Compound Interest: Earning returns on both principal and previously earned interest
  • Time Value of Money: Money today is worth more than the same amount in the future
  • Dollar-Cost Averaging: Regular investments reduce the impact of market volatility
  • Real Returns: Returns adjusted for inflation show true purchasing power

Investment Strategies:

  • Lump Sum: Invest a large amount all at once
  • SIP (Systematic Investment Plan): Regular monthly investments
  • Growth Investing: Focus on capital appreciation over time
  • Value Investing: Buy undervalued assets for long-term gains
  • Diversification: Spread risk across different asset classes

Factors Affecting Returns:

  • Market Risk: Volatility can affect short-term returns
  • Inflation: Reduces the purchasing power of future money
  • Taxes: Capital gains and dividend taxes reduce net returns
  • Fees: Management fees and transaction costs impact performance
  • Time Horizon: Longer periods generally reduce risk and increase returns

Investment Tips:

  • Start investing early to maximize compound growth
  • Invest regularly regardless of market conditions
  • Diversify across asset classes and geographies
  • Keep investment costs low
  • Stay invested for the long term
  • Review and rebalance your portfolio periodically
  • Consider tax-advantaged accounts (401k, IRA, etc.)

Common Investment Vehicles:

  • Stocks: Ownership shares in companies (higher risk/return)
  • Bonds: Debt securities with fixed returns (lower risk)
  • Mutual Funds: Professionally managed diversified portfolios
  • ETFs: Exchange-traded funds with low fees
  • Real Estate: Property investments for income and appreciation
  • Index Funds: Low-cost funds tracking market indices