- Starting amount
- The starting balance
or current amount you have invested or saved.
- Additional contributions
- The amount that you plan
on adding to your savings or investment each period. The investment
period options include monthly, quarterly and annually. This calculator
assumes that you make your contributions at the beginning of each
- The total number of years
you are planning to save or invest.
- Rate of return
- The annual rate of return
for this investment or savings account. Historically the major stock
indexes have averaged about 10% per year. If you plan on withdrawing
your money within five years, you may wish to choose a more conservative
rate of return. Savings accounts at a bank or credit union pay as
little as 2% or less.
- Earnings on an investment's
earnings, plus previous interest. This calculator allows you to choose
the frequency that your investment's interest or income is added to
your account. The more frequently this occurs, the sooner your accumulated
interest income will generate additional interest. For stock and mutual
fund investments you should choose 'Annual'. For savings accounts
and CDs all of the options are valid, although you will need to check
with your financial institution to find out how often interest is
being compounded on your particular investment.