Investment Calculator
Investment Details
Investment Analysis
Final Balance
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Total Contributions
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Total Interest
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Inflation Adjusted Balance
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Understanding Investment Growth
Investment growth is powered by compound interest - when your returns generate their own returns. The more frequently interest is compounded and the longer your investment horizon, the more dramatic this effect becomes.
Investment Strategies
Lump Sum Investing
- Invest a large amount at once
- More time in the market
- Potentially higher returns
Dollar-Cost Averaging
- Regular periodic investments
- Reduces timing risk
- More manageable for most investors
Factors Affecting Returns
- Time Horizon:
- Longer periods allow more compounding
- Helps smooth out market volatility
- Rate of Return:
- Different asset classes have different expected returns
- Higher returns often come with higher risk
- Contribution Amount:
- Regular contributions accelerate growth
- More contributions = more potential returns
- Inflation:
- Reduces purchasing power over time
- Important to consider real returns
Investment Tips
- Start early to maximize compound interest
- Diversify your investments
- Consider your risk tolerance
- Reinvest dividends and gains
- Review and rebalance regularly
- Account for taxes and fees
- Stay invested during market volatility