Investment Calculator (2024)

Use this investment calculator to calculate a specific investment plan parameter. The tabs denote the requested parameter that has to be retrieved. Click the ‘Return Rate’ tab, for example, to get the investment return rate needed to meet a specific goal.

Investing is the practice of using money to generate additional income. You can use this calculator to find out several points about fixed-rate investments.

Variables involved

Several essential components make up an average financial investment.

  • Starting amount – This is the amount shown at the start of the investment, often known as the principal. For investing, it could be a significant saving account for a house, an inheritance, or the price of a lot of gold.
  • End amount – The intended amount at the conclusion of the investment’s life cycle.
  • Return rate – This indicator carries the most significant importance for many investors. At first glance, this is a simple percentage. Still, it is a number used to compare the attractiveness of different types of financial investments.
  • Investment length – The time horizon over which an investment will provide a return. When an investment is made over a more extended time, it is more likely to reap more significant profits because of compounding.
  • Additional contribution – You can make investments without them. But any additional contributions over the life of the investment will result in more accumulated income and a higher final value.

Different Types of Investments

There are much more investment alternatives. A wide range of investment opportunities can be analyzed using our Investment Calculator. Some of the most typical investments are provided below.

Certificates of Deposit

A CD, accessible at most institutions, is an easy example of an investment that may be used with the calculator. A certificate of deposit is, undoubtedly, a low-risk investment. The Federal Deposit Insurance Corporation (FDIC), a government organization in the United States, ensures most banks in the country.

Interest rates on certificates of deposit (CDs) rise in proportion to how long they are held. A specific amount of the CD is insured by the FDIC. It offers a predictable return and investment duration rate because the interest rate is set for a particular period. Savings and money market accounts are two other low-risk products with modest interest rates. For investments involving CDs, we provide a CD Calculator.


You can get high-interest rates by investing in bonds or debentures. Investing in bonds involves risk, and you must pay premiums at a higher rate as your risk increases. Companies that have been given a high-risk rating by rating agencies (such as Moody's, Fitch, and Standard & Poor's) are issuing bonds.

Even yet, these companies could go out of business, causing investors to lose money. Investing in bonds issued by corporations that have been rated highly for their low risk by the agencies above is safer, but this yields a lower interest rate.

It is possible to buy bonds for short or lengthy periods. Because of differences in supply and demand, the bond market may have short-term trading opportunities. A short-term bond investor does not want to keep an investment until it matures, buying low and selling high. When interest rates rise, bond prices fall. These processes are inversely related to each other.

Investing in bonds is a safe bet if you hold them until they mature. Bondholders receive their entire face value at maturity, and interest is paid twice a year. Long-term bond investors need not worry about the influence of interest rates on bond prices or market values following an investment strategy. There is no need to adjust the plan even if interest rates rise and the market value of bonds fluctuates.

Treasury Inflation-Protected Securities (TIPS) are a distinct type of U.S. Treasury security designed to protect against inflation. Unlike traditional treasury bonds, TIPS are indexed to inflation, ensuring that the principal value rises with inflation. They offer a government-guaranteed return, providing a level of security for investors. While TIPS can be an attractive option for hedging against inflation, their returns might be more modest compared to some other fixed-income investments.

CPI (The Consumer Price Index), used to measure inflation, ensures that TIPS will rise in value. Because of this, they stand out from the crowd. Using our Inflation Calculator, you may learn more about inflation and TIPS.


Investments in equity, such as stocks, are common. Institutional and private investors rely on these assets, even though they do not pay a stable rate of return.

A stock represents a portion of a company’s ownership. Shareholders receive money as dividends for as long as they hold their shares in a publicly traded corporation (and the company pays dividends). Almost all stock trades occur on exchanges, and many investors buy stocks with the expectation of reselling them later for a profit. Investors may also choose to invest in mutual funds or other stock funds pooling multiple stocks.

A financial manager or corporation typically looks after these funds. In exchange for the ability to engage with the management or firm, the investor must pay a small amount known as a “load.”

An exchange-traded fund (ETF) is a different type of stock fund that follows an index, sector, commodity, or other types of assets. An ETF can track a wide range of assets, from the S&P 500 index for specific kinds of real estate, commodities, bonds, and more. In the same manner that a stock can be bought or sold, an ETF fund may be purchased or sold.

Real Estate

Real estate is another popular investment option. You can purchase a property and develop it to boost its value. Afterward, you can sell them (known as “flipping”) or rent them out until a more suitable time. Buying a home or apartment is a common way to invest in real estate.

For investing in real estate, many things can change the value of a property, like gentrification, the development of the local area, or even events that happen worldwide. For further information or to perform calculations regarding rental properties, please use our comprehensive Rental Property Calculator.

Suppose you prefer a hands-off approach, such as investing in income-producing real estate through a third party. In that case, there are investment vehicles such as Real Estate Investment Trusts (REITs).


Commodities round out the list. These include precious metals such as silver and gold and valuable commodities such as oil and gas. Investing in gold is difficult because its value is determined solely because it is a material with a limited supply. Investors buy gold when there is a conflict or crisis, which drives the price up.

For investing in silver, demand for the commodity in photovoltaics, automobiles, and other practical applications significantly impacts the metal price.

Oil is a highly sought-after commodity because gasoline is usually in short supply. Oil prices fluctuate with the status of the global economy on the spot markets, which are open to the public and where items are traded for immediate delivery.

Gas and other commodities can be traded through futures exchanges before delivery. You can avoid the final delivery point if you trade in and out of futures contracts. The largest futures exchange in the United States is the CBOT in Chicago, which deals in commodities, including gas.

Using our investment calculator makes it easy to calculate any of the investments listed above. For example, the “Return Rate” variable for an investment calculation can be based on the historical average return rates of similarly sold homes or future estimates. Still, it’s rather tough to determine how much each variable should cost.

Inputs for “Additional Contribution” can be any combination of capital expenditures or a specific stream of cash flows related to purchasing a plant. It’s impossible to arrive at correct figures because of this issue, so you should take results with a grain of caution.

Check other financial calculators before using our Investment Calculator for more accurate and extensive calculations.

Investment Calculator (2024)
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