Consistent investments over a number or years can be an effective strategy to accumulate wealth. Even small additions to your savings add up over time. This calculator demonstrates how to put this savings strategy to work for you!
Definitions
Starting Amount
The starting balance or current amount you have invested or saved.
Additional Contributions
The amount that you plan on adding to your savings or investment each period. The investment period options include monthly, quarterly and annually. This calculator assumes that you make your contribution at the beginning of each period.
Years
The total number of years you are planning to save or invest.
Rate of Return
The annual rate of return for this investment or savings account. Historically the major stock indexes have averaged 11% to 12% per year. If you plan on withdrawing your money within five years, you may wish to choose a more conservative rate of return. An ordinary savings account earns 2% to 5%.
Compounding
Earnings on your accumulated returns. Please select 'compound monthly', because at PFFCU, interest is calculated monthly. |
