Investment is a very big deal, it’s important to start investing in the future right now. There are various things in which you can invest in which includes real estate, cryptocurrency, stock, and more. When you start investing, it is important that you know the end-point of your investment. Meaning, you need to know what you’ll make at the end of your investment. An investment calculator is an important tool that allows you to calculate your estimated investment interest. Also, this will allow you to reach your investment goals.
The main objective of the investment is to earn more money. For instance, if you invest something worth $12,000 your objective is to make more than your investment. Whether you make profit or loss, your incur is known as “return on investment.” Plus based on compounding return, the more your money stay, the higher the chance of you getting rich
How to Calculate Investment Return
The use of an investment return calculator is a simple tool used in calculating your investment. However, this requires you to provide some information in calculating your investment. You need to know that there is a different platform used in calculating your investment. Some of which include NerdWallet Investment Calculator, Bankrate, and more. Depending on the tool you’re using, you might be asked to provide information like initial investment, regular contribution, years to grow, and also rate of return.
Different Between Total Returns and Prince Returns
When calculating investment return what that should to you as an investor includes “is it the price return or the total return?” Taking about price return, this serves as an annual change in price of stock or mutual fund. For instance, you invested $500 and the price went up to $750, this means this stock price made up to 500%. If another year comes and the price closes at $600, this means the stock price went down to 200%.
In the case of total return, this serves as a regular cash payment from your investment. According to reports, in the past 30 years, what differentiates between total return and price return of the S&P 500 is just 2% points annually on average.
Best Investment Calculator
Just like I stated earlier, you can decide to use NerdWallet or Bankrate investment calculator to calculate the estimate of your investment interest. Others once you can also try out includes the following investment calculator:
- PPF Calculator
- SIP Calculator
- Dividend calculator
- Investor.gov, and more.
Once you have access this respective platform, you can use the online investment calculator to your investment interest.