Free investment calculator to evaluate various investment situations considering starting and ending balance, contributions, return rate, and investment length.
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According to the concept of time value of money, a dollar in hand today is worth more than a dollar promised at some future time. This is the basis of interest payments and future value calculations.
For any typical financial investment, there are four crucial elements: Return rate, Starting amount (principal), End amount (future value), Investment length, and Additional contributions.
Investment Calculator can handle various investment types including CDs, bonds, stocks, real estate, and commodities. Each type has different risk and return profiles.
Periodic payment (PMT) is an inflow or outflow amount that occurs at each period of a financial stream. The choice between payments at the beginning or end of compounding periods has large ramifications on the final amount of interest incurred.