How Does An Investment Calculator Simplify Your Financial Decision-Making?

Are you saving money for the future? If yes, good. But do you know if that saving is going to beat the economic inflation of the future? Unsure are you? You can use a savings returns calculator. Used it yet? If you have, you can see that the returns savings give you is not as much as an investment would.

But, if you are still doubtful if an investment calculator will give you what you need as a hedge against inflation or economic growth, why not use an investment returns calculator?

Oh yes! They exist, too. Let’s find everything essential about an investment return calculator.

What is an Investment Calculator?

Understanding the prospective returns on your investment plans allows you to make informed judgments when making long-term goals. The investment calculator is a useful tool for estimating the returns on your investments. By entering certain variables into the online investment calculator, you can receive useful insights into your financial future.

Some examples of investment calculators are – mutual fund return calculators, SIP investment calculators, real estate calculators, and more.

What Would You Have to Enter Into an Investment Calculator?

1. The Amount of Investment: This is the amount you are willing to invest at a specific frequency.
2. The Frequency of the Investment: This is the frequency with which you are willing to invest in order to meet your financial objectives.
3. Time Frame of the Investment: This is the time frame for which you are willing to continue investing.
4. Estimated Return Rates: This is the percentage rate of return you anticipate for your investment in relation to the investment plan you select.

Types of Investment Calculators

Let’s look at some major kinds of calculators out here:

1. Bond Return Calculator
2. Stock return calculators
3. CD return calculators
4. Real estate return calculator
5. Commodities returns calculator

Ways an Investment Calculator Will Help You

There are just so many reasons an investment calculator would help you and your financial well-being; let’s find out how!

It Helps You Decide If the Investment is Your Cup of Tea

Investment calculators would typically take you to the roundabout to decide which form of investment is best for you. As you read above, there are various kinds of investment calculators – and instead of pacing the floor on where to put your money, you can see the outcome from different kinds of investments – and choose one that suits you the best.

You Get an Idea of the Returns from the Investment

Although the use of an investment calculator is only going to give you an estimation of what the returns would be, you, at the bare minimum, have the ‘estimations.’ These estimations can either draw towards the new investment choice or farther away. The entire economy works on estimations, and when it comes to your investments and how they would potentially perform in the future – you need to know in order to safeguard your future from any prospective damage.

You understand if the Investment Is Worth Your Risks.

Risks are inevitable, especially when it comes to investments such as real estate, gold, and the stock market. You would also have to note that these are some of the most attractive and rewarding investments out in the market today. Just because there are risks, are you never going to choose these investments? They can be a rewarding part of your portfolio, right? Therefore, with just enough understanding regarding these risks – you can know if this investment would actually suit you and your risk tolerance.

Whether it is now or a little later in the future, you need to be capable of handling the risks of your investments. Otherwise, your risks are just going to turn out to be big-time losses. This is why you need the help of an investment calculator. Although it might not exactly tell you the losses, it can walk you through the journey.

You Decide the Frequency of Your Investment

Let’s say you have a fixed return amount in mind – how do you know how much you have to invest in order to get that amount? Most people these days choose to invest in SIPs or small part amounts in a frequency, which makes it an even harder factor to decide how much to invest.

For instance, let’s say you want a corpus of 50,000 at the end of 1 year, including the interest. You want to make this investment each month – how much do you have to invest each month when the returns range somewhere around 11%? Are you going to sit around and do the math for this? Obviously, that is so much time consumption. Instead, you can use this calculator – you will know how much you need to invest, the frequency of your investment, and, most times, even how much time you need to invest. Isn’t this a great alternative to actually doing the math manually all by yourself? Using the investment returns calculators online, you can get your solutions almost instantly.

You Can Determine For How Long You Want to Stay Invested

As mentioned previously, the same factor matters on this point, too. You can decide how long you can carry the investment on. You can align time by your side with the use of this calculator.

Conclusion

Now that you know how much an investment returns calculator would help you – why not start using it? You also have to be sure of some other factors, some as – these calculators are only mere estimations. They will give you an idea of what your investment returns would give but are not actually guaranteed. But they sure set the base.