Investment Returns

Meeting your long-term investment goal is dependent on a number of factors. This not only includes your investment capital and rate of return, but inflation, taxes and your time horizon. This calculator helps you sort through these factors and determine your bottom line. Click the "View Report" button for a detailed look at the results.

After YEARS years you could have INVESTMENT_FINAL_TOTAL.

Your original investment of INITIAL_INVESTMENT plus your annual investments of ANNUAL_INVESTMENTS could be worth INVESTMENT_FINAL_TOTAL after YEARS years. This assumes an annual rate of return of RATE_OF_RETURN and all of your annual investments happen at the beginning of the year. All values are shown MSG_INFLATION_ACCOUNT inflation is taken into account. **GRAPH**
Input Summary
Years YEARS
Rate of return RATE_OF_RETURN
Initial investment INITIAL_INVESTMENT
Annual investments ANNUAL_INVESTMENTS
Inflation rate INFLATION_RATE
Tax rate TAX_RATE
Adjust annual investment for inflation? ADJUST_ANNUAL_INVESTMENT_FOR_INFLATION
Show all values after inflation? SHOW_VALUE_AFTER_INFLATION
Results Summary
Compounded interest return COMPOUNDED_INTEREST_RETURN
Simple interest return SIMPLE_INTEREST_RETURN
Total invested capital TOTAL_INVESTED_CAPITAL
Investment final total INVESTMENT_FINAL_TOTAL

Investment Balance by Year

**REPEATING GROUP**

Investment Returns Definitions

Years
The number of years you wish to analyze. This can be any number from one to one hundred.
Rate of return
This is the annually compounded rate of return you expect from your investments before taxes. The actual rate of return is largely dependent on the types of investments you select. The S&P 500® for the 10 years ending Dec. 31st, 2013 had an annual compounded rate of return of 7.3%, including reinvestment of dividends. From January 1970 through the end of 2013, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.6% (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a bank may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.

It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.

Initial investment
Total you currently have invested that should be included in this analysis.
Annual investments
The amount you will contribute each year to your investments. If you check the box to adjust this amount for inflation, your annual investment will increase each year by the inflation rate.

Inflation rate
This is what you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI). From 1925 through 2013 the CPI has a long-term average of 3.0% annually. Over the last 40 years highest CPI recorded was 13.5% in 1980. For 2013, the last full year available, the CPI was 1.7% annually as reported by the Minneapolis Federal Reserve.
Tax rate
The percentage of your investment return you will pay in taxes. Your taxes are assumed to be payable annually, at the end of the year.

Inflation adjustment
Check this box to increase your future investment amounts for inflation.
Show values after inflation
Check this box to show all totals after inflation. By choosing this option you will see the value of your investments in terms of purchasing power, if you had that amount available today.
Compound Interest
Interest on an investment's interest, plus previous interest. The more frequently this occurs, the sooner your accumulated interest will generate additional interest. You should check with your financial institution to find out how often interest is being compounded on your particular investment.
Compounded interest return
Total after-tax return if your investment profit is compounded annually.
Simple interest return
Total after-tax return if your investment profit is simple interest with no compounding.
Total invested capital
Total you have invested. This includes your initial investment and all periodic investments.
Investment final total
Your investments total ending value. If you have checked the box to show values after inflation, this amount is the total value of your investment in today's dollars. If this box is unchecked, it will show the actual value of the investment.


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