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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.
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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