Do you know about the Investment Calculator? As investment is a big deal, it is very important to start investing for the future right now. There are several things one can invest in which includes real estate, cryptocurrency, stock, etc.
Investment Calculator
An investment calculator is an important tool that offers investors to calculate their estimated investment interest. This tool will also allow users to reach their investment goals.
Investment Returns
The major objective of investment is to earn more profits what ever you put into it. For example, if you invest something with value of $12,000, your aim should be to make an additional money to the initial capital. This additional money whether profit or loss is known as “Investment Return”.
Best Investment Calculator
I would recommend investors to use the NerdWallet or Bankrate Investment Calculator to get estimate of their interest. Below are some other tools you can try out:
- PPF Calculator
- SIP Calculator
- Dividend calculator
- SmartAsset
- Investor.gov
And many more.
How to Calculate Investment Return
The calculator during it usage may require users to provide some information in calculating their investment. And also, there are more than one tools you can use to calculate your investment.
Depending on the tool you prefer to use, you might be required to provide information like your initial investment, regular contribution, years to grow, and also rate of return.
Difference between Total Returns and Price Returns
When using the investment calculator tool, you should know if the investment return is a price return or total return. Now you may wonder what the difference between both returns are.
Price return serve as an annual change in price of stock or mutual fund. For example, is you invest $500 and price went up to $740, this means that the stock price made a return of 500%. And if the price closes at $600 after a year, it means the stock price went down to 200%.
Total return serves are a regular cash payment from your investment, In the past 30 years according to report, what differentiates between total and price return of S&P 500 is just 2% annually on an average.
