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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.
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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 dependant
on the type of investments you select. For example, for
the last thirty years the average annual rate of return
for domestic equity stocks has been about 10%. Savings
accounts at a bank pay as little as 2%.
- Initial investment
- Total you currently have invested
that should be included in this analysis.
- Inflation rate
- What you expect for the average
long-term inflation rate.
- 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.
- 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.
- 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 it the total value of your investment in today's
dollars. If this box is uncheck, it will show the actual
value of the investment.
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