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Investment Calculator

Investment Calculator calculates how much your money will grow over time with compound interest. Online investment calculator with monthly deposits shows the total amount after a certain yeras of growth.

Investment Calculator With Monthly Deposits

You will be surprise to see how much your money can grow with monthly contributions. The investment calculator with contributions has option for monthly and yearly contributions. Ideally, you should save at least 15% of your pay towards retirement.

Online Investment Calculator

Initial Amount: $
Rate of Return: %
Years To Grow: years
Additional Contributions: $


What is investing?

Investing is a way for people to grow their money using money. They can buy stocks, bonds, real estate at a lower price, and hope that their investment grows or appreciates in the future.

Since the US economy has been growing in the past 100 years, investing in stocks, real estate for the long term turns out to be quite good for Americans.

There are a limited number of hours a day for everybody. If one were to work for a living, it is hard to get rich because he has only 24 hours a day. By investing, many Americans get rich and others have saved in their retirement accounts.

However, there are risks in investing. If one bought the wrong stock, he could lose all his money. If one purchases an overpriced real estate property, he may have a hard time finding a buyer in the future and lose money on the transaction as a result.


How to get started in investing?

As a beginner, many are confused about where to get started. The best way to get started is to focus on what you already know.

If you are an accountant, stocks may be something that you are interested in because you will have an edge over many people.

On the other hand, if you are a good salesperson and like to deal with people, you may find real estate investment attractive because you will be dealing with different people.

Since there are risks in investment, you also need to know what kind of risks that you can tolerate. In general, the real estate and the bond market are less volatile than the stock market. If you are near retirement, you should be cautious if you want to get into the stock market.

For younger people, the stock market offers better returns in the long run. However, most beginners go broke trying to time the market and short-term trading. Their concept of the stock market is to get rich quickly which usually doesn't end well. Many people jump into the stock market without any understanding of how the stock market works, which is a sure way to lose money.

Investing is hard work, meaning one needs to be constantly learning what works and what doesn't. That's why you should choose an investment field that you have a genuine interest in rather than only go for the money.




Investing for beginners

Many people try to diversify their investments when they first get started. I think this is a mistake because then it is hard for you to be good at any type of investment.

One should spend at least 1-2 years learning about one type of investment and then expand to other markets when they have more experience. For example, the stock market and the real estate market are radically two different markets and require different sets of skills and experience.

While it is possible to learn how the stock market works by reading books, taking courses, it is hard to learn about real estate without you getting out there and starting meeting people, buyers, sellers, lenders, real estate agents, construction workers, and so on.

To make money from investing in the short term, luck plays a critical factor. One may buy a stock, and the next day its stock price doubles up on news of acquisitions. This is what we call luck, and this kind of luck rarely happens.

To be successful in investing for the long term, one must be skillful and be willing to spend a lot of time learning how the investment game works. In the case of stock investing, one must learn how to read income statements and balance sheets, research a company's products, leadership team, competitor's products, how fast the company is growing, what kind of price to pay for its stock price.


Best investing books

To help beginners get started in investing, here are some investing books that we recommended that every investor should have on their shelves.

  • The Intelligent Investor - the bible of stock market investing. The book was written over half a century ago, by Benjamin Graham. Warren Buffet, the world's greatest investor of all time, was a student of Benjamin Graham. While many of the investing strategies in the book are no longer relevant in today's market, the core investing fundamentals and principles remain unchanged.

  • The Little Book of Common Sense Investing - If one doesn't have time or the energy to do all the research about individual stock, buying index funds is the key to growing one's money. An index fund is an exchange-traded fund (ETF) that follows a benchmark index, such as the S&P 500 or the NASDAQ 100. By owning an index fund, one minimizes the risk of an individual company going bankrupt or their stocks going to zero.

  • One Up on Wall Street - written by Peter Lynch, who grew the Magellan Fund at Fidelity Investments from $18 million to $14 billion in 13 years from 1977 and 1990. In this book, Peter shows how an individual can find good companies to invest in before Wall Street does. He shares his investing strategies to find stocks that have the potential to up 10 times.

  • The Warren Buffett Way - written by Robert G. Hagstrom on how Warren Buffett makes his billions owning stocks and companies. The book not only shows you the investing strategies that Warren Buffett uses to select stocks but you will also learn how powerful it is to use compound interest to grow money in the long term. By selecting good stocks with a low turnover ratio, one saves money on taxes and beats the benchmark index by a wide margin.

  • Rich Dad Poor Dad - a book written by Robert T. Kiyosaki. This is not a how-to guide that teaches you how to invest in the real estate market. Instead, it is a guide that will change your thinking about investing and owning real estate for the long term. By changing your attitudes toward money, you will change the outcome of your life.



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