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The Savings Calculator allows you to figure out how to
save for a goal by answering all questions related to savings. The calculator
allows you to solve for one of the following variables while allowing you
to modify the others:
| Number of Years |
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Click this button for answers to questions about
how long it will take to reach your savings goal.
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For example, you may want to
know 'how long will it take me to be a millionaire if I can
invest $1,000 every month to return 10% annually?' |
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Or, 'if I am a bit more conservative
and invest in less risky ventures, how long before I reach my
goal?' |
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Or, 'if I consider my current
invested assets of $100,000, will that help me get there sooner?' |
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Or, 'if I can tighten my belt
and contribute $500 more every month, how much sooner will I
reach my goal?' |
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| Annual Return |
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To answer questions about how much your investments
should be returning, click the button marked 'Annual Return'.
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For example, you may want to
know 'how much the average annual return have to be for me to
reach my goal?' |
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Or, 'how much do I save every
month to reach my goal in a specified amount of time?' |
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Or, 'how much do I save now
to reach my goal in a specified amount of time?' |
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| Opening Balance |
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To answer questions about how much money you have
to start with in addition to a monthly savings to reach your savings
goal, click the marked 'Opening Balance'.
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For example, you may want to
know 'if I am saving $100 a month and invest that in a fund
averaging 12% for the next 10 years, how much money do I need
to invest right now to buy a $20,000 boat?' |
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Or, 'if I want to buy the boat
in 5 years how much do I need to invest right now?' |
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Or, 'if I cannot average 12%
on my investments but only 8%, does that significantly change
the amount I need to invest now?' |
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Or, 'if I can invest a bit more
every month, how does that affect the amount I need to invest
right now?' |
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Or, 'if I set my sights on a
less expensive boat, does that significantly change the amount
I need to invest now?' |
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| Monthly Savings |
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By clicking the Monthly Savings button, you will
be able to answer several questions about how much to invest monthly
to reach your savings goals.
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For example, you may want to
know 'how much will I have to invest monthly in order to have
a million bucks at the end of 20 years?' |
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Or, 'how much should I invest
monthly if I invest in high growth funds returning 15%?' |
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Or, 'how much should I invest
if I already have $100,000 saved towards that goal?' |
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Or, 'how much should I invest
if I need more than a million bucks, perhaps $1,500,000?' |
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| Ending Balance |
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To figure out what your savings will grow to after
a specific number of years, click the button marked 'Ending Balance'
and vary any of the other variables.
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For example, you may want to
know 'how much will my account have at the end of 20 years,
if I contribute $100 every month?' |
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Or, 'how much more will my balance
be if I expect a return of 12% instead of 8% on my investments?' |
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Or, 'if I start with $1,000
instead of $0, how much would my nest egg be?' |
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Or, 'how far does an increase
of $100 go towards realizing my savings goal?' |
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| Tax Rate |
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To figure out what effect your tax rate
has on your savings growth, slide the tax rate slider left or right.
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For example, you may want to
know 'how much will my account have at the end of 20 years,
if my tax rate goes up?' |
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Or, 'how much more will my after-tax
balance be if I expect my tax rate to go down?' |
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Or, 'if I start with $1,000
instead of $0, how much would my nest egg be after taxes?' |
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| Compounding |
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To see the effects of differences in compounding,
select one of the variables in the compounding drop-down box. |
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For example, you may want to know
'how much more will I have in my account if my compounding occurs
monthly rather than quarterly?' |
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