BEST 50 INVESTMENT CALCULATOR LIST | 4 BENEFITS IN 2023
INVESTMENT CALCULATOR | Let's learn what is
investment calculator with a formula & what are the best 50 types of calculators.
INVESTMENT CALCULATOR
WHAT IS AN INVESTMENT CALCULATOR?
An
investment calculator is a tool that allows you to input various parameters,
such as the amount of money you plan to invest, the interest rate,
and the length of time for which you plan to invest the money, and then
calculates the expected return on your investment.
This can help you determine how much money you can expect to earn
from your investment over a certain period of time, and can help you
make decisions about how to allocate your investment funds.
4 BENEFITS OF USING AN INVESTMENT CALCULATOR
Determining the future value of investments: Investment calculators can help investors estimate
the future value of their investments based on a variety of factors, such as
the initial investment amount, interest rate, and length of time the investment
is held.
Estimating the impact of contributions or withdrawals:
Investment calculators can also help investors estimate the impact of making
contributions or withdrawals from their investment accounts, which can be
useful for budgeting and financial planning.
Evaluating different investment strategies:
Investment calculators can help investors compare the performance of different
investment strategies, such as stock market investing versus real estate
investing, which can help them make informed decisions about where to put their
money.
Setting realistic financial goals:
Investment calculators can help investors set realistic financial goals by
providing them with an estimate of how much they need to save in order to
achieve their desired outcome.
HOW DO YOU CALCULATE INVESTMENT?
There
are many ways to calculate investment returns, depending on the type of
investment and the information that is available. Some common methods include:
Simple
Interest: This method is used for investments that pay a fixed rate
of interest. The formula is:
Interest = Principal x Rate x Time
Compound
Interest: This method is used for investments that pay interest on
both the principal and the accumulated interest.
The
formula is- A = P (1 + r/n)^(nt), where A is the future value of the
investment, P is the principal, r is the annual interest rate, n is the number
of times that interest is compounded per unit t, and t is the time the money is
invested for.
Internal
Rate of Return (IRR): This method is used to calculate the rate at
which the net present value (NPV) of an investment equals zero. It is used to
evaluate the profitability of potential investments.
Net
Present Value (NPV): This method is used to calculate the present
value of an investment's expected future cash flows, minus the initial
investment. It is used to evaluate the profitability of potential investments.
Price
to Earnings Ratio (P/E ratio): This method is used to
evaluate a company's current share price relative to its per-share earnings. It
is used to determine whether a stock is overvalued or undervalued.
It is important
to note that these are just some of the ways to calculate investment returns,
and different methods may be more appropriate for different types of
investments.
WHAT ARE THE 10 TYPES OF INVESTMENTS?
There
are many different types of investments, but ten common categories include:
Cash and cash equivalents: These include investments such
as savings accounts, money market funds, and short-term government bonds. They
are considered to be the least risky investments and typically provide low
returns.
Bonds: Bonds are debt securities that are issued by
governments and corporations. They pay a fixed rate of interest and return the
principal when they mature. They are considered to be less risky than stocks
but more risky than cash and cash equivalents.
Stocks: Stocks are equity securities that represent
ownership in a publicly traded company. They can provide higher returns than
bonds or cash, but they also come with higher risk.
Real estate: Real estate investments can include buying
property to rent out, investing in real estate investment trusts (REITs) or
participating in real estate crowdfunding. They tend to be more illiquid than
other types of investments and they also tend to be more difficult to value.
Mutual Funds: A mutual fund is a specific kind of
investment vehicle that assembles a pool of money from numerous individuals
with the intention of investing in securities like stocks, bonds, money market
instruments, and similar assets.
Exchange-Traded Funds (ETFs): ETFs are a type of investment
fund that is traded on stock exchanges, much like stocks. They offer
diversification and can track an index, a commodity, or a basket of assets like
an index fund.
Certificates of Deposit (CDs): A certificate of
deposit is a type of time deposit offered by banks, which generally offers a
higher interest rate than a savings account.
Options: Contracts known as options grant the holder the
right, but not the duty, to purchase or sell an underlying asset at a
predetermined price on or before a particular date.
Futures: A future is a type of financial contract
obligating the buyer to purchase an asset or the seller to sell an asset, such
as a commodity or currency, at a predetermined future date and price.
Cryptocurrency: Cryptography is used to secure digital or
virtual currencies such as cryptocurrency. The two most well-known types of
cryptocurrencies are Bitcoin and Ethereum. They are viewed as very risky
investments that are high on speculation.
It's
worth noting that these are just examples, and there are many other types of
investments available, each with its own unique characteristics and risks.
FORMULA FOR RETURN ON INVESTMENT CALCULATOR WITH EXAMPLE
Are you
thinking how I calculate my return on investment? Then let's learn how
to calculate with this easy formula.
The
most basic formula for calculating the return on investment (ROI) is:
ROI = (Gain from Investment - Cost of Investment) / Cost of
Investment
The
percentage return on investment is determined using this formula. You
multiply the result by 100 to obtain the final ROI.
Here is
an example:
After a
year, an investor sells a stock for $120 after purchasing it for $100.
The
gain from the investment is $20
The
cost of investment is $100
The ROI
is (20-100) / 100 = -0.8 x 100 = -80%
This
means that the investment generated a negative return of 80%
Alternatively,
you can use the following formula to calculate the annualized ROI:
Annualized
ROI = ((Ending value / Beginning value)^(1/n)) - 1
Where:
The
investment's final value is its ending value.
Beginning
value is the investment's initial value, and n is the number of holding periods
(measured in years) for the investment.
It's
important to keep in mind that this is only a basic formula for determining ROI;
in more complicated situations, alternative approaches may be required based on
the particulars of the investment.
WHICH IS THE BEST INVESTMENT CALCULATOR?
There
are many investment calculators available online that can help you calculate
returns and track your investments. Some popular investment calculators
include:
Bankrate's Investment Calculator: This
calculator allows you to input information such as initial investment, annual
contribution, and interest rate to see the potential growth of your investment
over time.
Investopedia's Investment Calculator: This
calculator allows you to input information such as initial investment, annual
contribution, and expected rate of return to see the potential growth of your
investment over time.
Morningstar's Investment Calculator: This
calculator allows you to input information such as initial investment, annual
contribution, and expected rate of return to see the potential growth of your
investment over time.
SmartAsset's Investment Calculator: This
calculator allows you to input information such as initial investment, annual
contribution, and expected rate of return to see the potential growth of your
investment over time.
It's
worth noting that the best investment calculator is one that suits your specific
needs, such as the type of investment, the length of time you plan to invest,
and your risk tolerance.
Many
online calculators are free and easy to use, and you can use multiple
calculators to compare the results.
50 TYPES OF INVESTMENT CALCULATORS LIST
|
Retirement
calculators. |
|
Compound interest
calculators. |
|
Mutual fund
calculators. |
|
Stock return
calculators. |
|
Bond yield
calculators. |
|
Real estate
calculators. |
|
Tax calculators. |
|
Risk calculators. |
|
Asset allocation
calculators. |
|
Net worth calculators. |
|
Inflation calculators. |
|
College savings
calculators. |
|
Annuity calculators. |
|
Portfolio performance
calculators. |
|
Cost of living
calculators. |
|
Housing affordability
calculators. |
|
Income tax
calculators. |
|
Savings goal
calculators. |
|
Time value of money calculators. |
|
Capital gains tax
calculators. |
|
Credit card payoff
calculators. |
|
Home mortgage
calculators. |
|
Auto loan calculators. |
|
Currency exchange
calculators. |
|
Options calculators. |
|
ETF calculators. |
|
CD calculators. |
|
Savings bond
calculators. |
|
Mortgage refinance
calculators. |
|
401(k) calculators. |
|
Roth IRA calculators. |
|
Traditional IRA
calculators. |
|
Stock option
calculators. |
|
Foreign exchange
calculators. |
|
Mutual fund expense
ratio calculators. |
|
Stock return on
investment calculators. |
|
Property rental income
calculators. |
|
Stock option strike
price calculators. |
|
Retirement withdrawal
calculators. |
|
Investment property
calculators. |
|
Stock profit
calculators. |
|
Capital gains and
losses calculators. |
|
Stock market index
calculators. |
|
Stock split
calculators. |
|
Capital gains tax rate
calculators. |
|
Stock option grant
calculators. |
|
Stock option exercise
calculators. |
|
Stock option
expiration calculators. |
|
Stock dividend
calculators. |
|
Stock buyback
calculators. |
It's
worth noting that there may be other types of investment calculators available,
and the specific features of each calculator may vary.
These
calculators can provide a rough estimate of the expected return and also help
to plan your investment strategy accordingly.
They are useful tools for investors to make
informed decisions. However, it is important to keep in mind that these are
assumptions based on historical data, and the actual outcome may vary.
It's
always recommended to consult with a financial advisor before making any
investment decisions.
Conclude – Here
I have explained in complete detail about is investment calculator with benefits
for beginners.
DECLAIMER – THIS INFORMATION HAS BEEN SHARED ACCORDING TO MY BEST
KNOWLEDGE I AM NOT RESPONSIBLE IF YOUR
INVESTMENT IS LOST. CHECK BEFORE INVENTING YOUR MONEY AND GET THE LATEST ROI.