Stock CalculatorStock Calculator

Stock Compound Calculator

Calculate your stock investment compound returns and analyze long-term performance

This convenient Stock Compound Calculator allows you to project the growth of an investment over time by factoring in compound interest, additional contributions, and the return rate. Follow these simple steps to get started:

How to use:

  1. 1Starting Amount ($): Enter the initial amount you plan to invest.
  2. 2Set monthly/yearly contribution amount (if any)
  3. 3Input expected annual return rate
  4. 4Choose investment duration and reinvestment method
  5. 5Click on the 'Calculate' button to see compound return projection

Calculation Parameters

Results

Total Investment
$0.00
Initial + Contributions
Future Value (FV)
$0.00
Estimated Total Value
Net Gain
$0.00
Total Profit
Total Return
0.00%
Annualized Return
0.00%
Investment Period
10 Years

Accumulation Schedule

YearInitial ValueContributionReturn RateInterestFinal Value
No data available. Please calculate first.

Formula Variables

For any typical financial investment, there are four crucial elements that make up the investment.

Starting Amount

Sometimes called the principal, this is the amount apparent at the inception of the investment. In practical investing terms, it can be a large amount saved up for a home, an inheritance, or the purchase price of a quantity of gold.

Return Rate

For many investors, this is what matters most. On the surface, it appears as a plain percentage, but it is the cold, hard number used to compare the attractiveness of various sorts of financial investments.

Investment Length

The length of the life of the investment. Generally, the longer the investment, the riskier it becomes due to the unforeseeable future. Normally, the more periods involved in an investment, the more compounding of return is accrued and the greater the rewards.

Additional Contribution

Commonly referred to as annuity payment in financial jargon, investments can be made without them. However, any additional contributions during the life of an investment will result in a more accrued return and a higher end value.

Key Features

Principal Components

  • • Face Value (Par Value)
  • • Coupon Rate
  • • Maturity Date

Market Factors

  • • Market Interest Rates
  • • Credit Rating
  • • Market Price

Compound Interest Formula

The compound interest calculation includes two scenarios: contributions made at the beginning of each period (Beginning Mode) and at the end of each period (End Mode). The formulas are as follows:

Beginning Mode Formula:

A=P(1+rn)nt+C[(1+rn)nt−1rn](1+rn)A = P(1 + \frac{r}{n})^{nt} + C[\frac{(1 + \frac{r}{n})^{nt} - 1}{\frac{r}{n}}](1 + \frac{r}{n})

End Mode Formula:

A=P(1+rn)nt+C[(1+rn)nt−1rn]A = P(1 + \frac{r}{n})^{nt} + C[\frac{(1 + \frac{r}{n})^{nt} - 1}{\frac{r}{n}}]

Where:

  • • A = Final Amount
  • • P = Principal (Initial Investment)
  • • r = Annual Return Rate (as decimal)
  • • n = Number of Compounds per Year
  • • t = Time in Years
  • • C = Periodic Contribution Amount

Example:

Consider an investment with the following parameters:

P=$10,000 (Principal)r=8%=0.08 (Annual Return Rate)n=12 (Monthly Compounding)t=10 (Years)C=$100 (Monthly Contribution)\begin{align*} P &= \$10,000 \text{ (Principal)} \\ r &= 8\% = 0.08 \text{ (Annual Return Rate)} \\ n &= 12 \text{ (Monthly Compounding)} \\ t &= 10 \text{ (Years)} \\ C &= \$100 \text{ (Monthly Contribution)} \end{align*}

Calculation Process (Beginning Mode):

Step 1: Initial Investment Growth

P(1+rn)nt=$10,000(1+0.0812)12×10=$10,000(1+0.00667)120=$10,000×2.2196=$22,196\begin{align*} P(1 + \frac{r}{n})^{nt} &= \$10,000(1 + \frac{0.08}{12})^{12 \times 10} \\ &= \$10,000(1 + 0.00667)^{120} \\ &= \$10,000 \times 2.2196 \\ &= \$22,196 \end{align*}

Step 2: Periodic Contributions Growth

C[(1+rn)nt−1rn](1+rn)=$100[(1+0.0812)120−10.0812](1+0.0812)=$100[2.2196−10.00667](1.00667)=$100×182.85×1.00667=$18,431\begin{align*} &C[\frac{(1 + \frac{r}{n})^{nt} - 1}{\frac{r}{n}}](1 + \frac{r}{n}) \\ &= \$100[\frac{(1 + \frac{0.08}{12})^{120} - 1}{\frac{0.08}{12}}](1 + \frac{0.08}{12}) \\ &= \$100[\frac{2.2196 - 1}{0.00667}](1.00667) \\ &= \$100 \times 182.85 \times 1.00667 \\ &= \$18,431 \end{align*}

Step 3: Total Future Value

Total=Initial Investment Growth + Periodic Contributions Growth=$22,196+$18,431=$40,627\begin{align*} \text{Total} &= \text{Initial Investment Growth + Periodic Contributions Growth} \\ &= \$22,196 + \$18,431 \\ &= \$40,627 \end{align*}

After 10 years, the initial $10,000 investment plus monthly contributions of $100 would grow to approximately $40,627, assuming an 8% annual return compounded monthly.