Investment Calculator: What It Is and How to Use
Investment calculator is that type of tool which allows you to calculate various options for return on investment, taking into account the reinvestment. It can be used both to check the investment portfolio and to draw up a financial or investment plan.
An investor calculator is an excellent tool for calculating the required amount of capital for a comfortable retirement, but it can also be used for any other financial purposes. It is a good financial helper with the help of which you can understand is it worth to invest money. Sometimes ideas come when you don’t wait for it. So, if you can’t support your ideas financially, turn to any lending company, but take care. Calculate if it is profitable for you.
What Is Reinvestment?
It is also called compound interest. It is a kind of income accrual income. Albert Einstein called the compound percent formula “the greatest mathematical discovery of modernity.” But it is so elementary! Look at the schedule where we have compared simple interest and compound interest.
How to Use the Investor Calculator
You should just fill in the data required for calculating income in the financial online investor calculator.
- Initial deposit – the amount of money that was invested at the beginning;
- Expected return – deposit interest for 1 period (month, quarter, year);
- The term of the investment (the number of periods) during which it is planned to keep funds on the account, taking into account the monthly replenishments or withdrawals;
- Account replenishment – a period of time (once a month, 2 months, quarter, 4 months, half a year, year) through which you will add funds to the main deposit;
- Amount of replenishment – the amount of funds that you are willing to add to your account.
Having all the data mentioned above you can start choosing a suitable calculator. Sy the way, we have collected 7 the most popular investment calculators.