# Present Value Goal Calculator

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Use this calculator to determine the how much needs to be invested now to achieve a future goal. The total amount required immediately is reduced by the present value of a stream of deposits.

## Present Value Goal Calculator Definitions

Start date
Date to calculate the present value. The tool assumes that this is also the date of the first periodic payment if deposits are made at the beginning of a period.
End date
Date your investment or account will be worth the entered future value.
Future value
Total future value of the stream of payments, plus the calculated present value amount. This includes the compounding of interest at the specified rate and frequency.
Periodic deposit (withdrawal)
The amount that you plan on adding to this savings or investment each period.
Deposit frequency
The frequency of your periodic deposits. Periods options include weekly, bi-weekly, monthly, quarterly and semi-annually and annually. You can choose to make deposits at the beginning or the end of each period.
Rate of return
The rate of return for this investment or savings account. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31st 2021, had an annual compounded rate of return of 13.6%, including reinvestment of dividends. From January 1, 1970 to December 31st 2021, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 11.3% (source: www.spglobal.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 financial institution 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 investment funds and/or investment companies may charge.

Compounding method
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 earnings will generate additional earnings. For stock and mutual fund investments, you should usually 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.
Deposits at beginning
Check here to make all future periodic deposits or withdrawals at the beginning of each period. Uncheck this box for the end of the period.