Compound Interest Calculator
Evaluate the growth of your savings using online tool PortfolioMetrics.
Our Compound Interest Calculator helps you forecast the growth of your investments or savings over time. Whether you're planning for retirement, saving for a major purchase, or simply want to see how your money can grow, this tool provides valuable insights into the power of compound interest.
The calculator takes into account your initial investment, time horizon, annual growth rate, and it factors in various cash flow scenarios:
- no additional flows,
- fixed contributions,
- fixed withdrawals,
- percentage-based withdrawals.
You can set the frequency of contributions or withdrawals to monthly, quarterly, or yearly, allowing for a more accurate representation of your financial strategy.
When selecting an annual growth rate, consider the following:
- For conservative estimates, use historical average returns of low-risk investments like bonds (2-5%)
- For moderate growth, consider average stock market returns over long periods (7-10%)
- For aggressive growth, you might use higher rates (10-12%), but be aware of increased risk
- Always account for inflation, which typically ranges from 2-3% annually
Remember, past performance doesn't guarantee future results. It's often wise to calculate scenarios with different growth rates to see a range of possible outcomes.
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