Investment Calculator

Part 1: What would you like to know (select an option)?

Part 2: Answer the following to know how much your investment will be worth in the future.

Goal in words: If I invest P50,000 now in a product that earns 7% interest per annum or grows by 7% each year, and I add P12,000 every year, how much will my investment be worth in 5 years?

Part 3: Details

Investment Details

Starting Amount:P0.00
Total Additional Investments or Contributions:P0.00
Total Interest Amount:P0.00
End Balance:P0.00

Background


When choosing an investment product, it is important for us to understand its potential growth so that we can make informed financial decisions. Will the investment help us achieve our financial goals, such as saving for our children's education, buying a family home, a car, or preparing for retirement? How long will it take to see significant returns? How much should we regularly invest to reach our target, etc.?

These questions are crucial for comparing different investment opportunities available in the market and determining if the investment product we are considering is the right one for us or if we should explore other options. For instance, we might compare traditional savings accounts with mutual funds, stocks, or government bonds and assess which one aligns best with our financial aspirations. This strategic approach to investment planning empowers us to manage risks, optimize returns, and achieve financial success.

By answering the questions above and adjusting the figures accordingly, we hope these tools will help you have a better estimate and plan towards your financial goals, whether it's for a dream vacation, starting a small business, or simply securing a comfortable future.

Importance and Benefits of Each Investment Parameters:


1. Calculating the Possible Future Value of Your Investments

  • ● Importance: Estimating the future value of your investments helps you understand how much your current investments will grow over time. This knowledge is essential for setting realistic financial goals and planning for future financial needs.
  • ● Benefit: By knowing the potential growth of your investments, you can assess whether your current investment strategy aligns with your long-term objectives and make necessary adjustments.

2. Calculating the Needed Initial Investment to Reach a Target Goal

  • ● Importance: Determining the required initial investment allows you to understand how much money you need to invest today to achieve a specific financial goal in the future.
  • ● Benefit: This calculation helps in setting a clear investment strategy and ensures that you are on track to meet your financial targets within the desired timeframe.

3. Calculating the Needed Regular Contribution to Reach a Target Goal

  • ● Importance: Knowing the regular contribution needed to reach a target goal helps you plan your savings and investment contributions systematically.
  • ● Benefit: It ensures that you are consistently investing the right amount to achieve your financial objectives, making it easier to incorporate investing into your budget and financial planning.

4. Calculating How Long an Investment Will Take to Reach the Target Goal

  • ● Importance: Understanding the duration required to reach a financial goal helps you set realistic expectations and timelines for your investments.
  • ● Benefit: This calculation aids in long-term financial planning and helps you stay committed to your investment strategy by providing a clear timeline for achieving your goals.

5. Calculating the Interest Rate to Reach the Target Goal

  • ● Importance: Determining the required interest rate to achieve a target goal helps you evaluate whether your current or potential investments can realistically meet your financial objectives.
  • ● Benefit: This knowledge allows you to compare different investment options and select those that offer the necessary return rates, ensuring that your investment strategy is aligned with your financial goals.