Investment Calculator

Editorial Note: This content is not provided by the companies mentioned. Opinions expressed here are author's alone, and have not been reviewed, approved or otherwise endorsed by the companies.
This article contains references to products from our partners. We may receive compensation if you apply or shop through links in our content. You help support CreditDonkey by reading our website and using our links. (read more)

What will $10,000 be worth in 20 years? Find out how to calculate investment growth with this calculator, including what you'll earn in yearly interest.

Investing is all about timing.

The earlier you invest, the more interest you earn.

Wondering where your investment will stand in 5-, 10-, or 20-years' time? This calculator shows you:

  1. How much your investment will grow
  2. How much interest you'll earn in total (and per year)
  3. How much of your ending balance is interest vs. contributions

Investment Calculator

Find out how your investment is calculated, investment options to choose from, and which 3 things to do before you invest below.

How to Calculate Investment Growth

This calculator shows you how the initial investment will grow over a specific number of years. Here's how it works:

  1. First, enter your Initial Investment. This is the amount of money you put in the account when you first opened it.

    It can also be the starting point from which you want to calculate your returns (regardless of when you opened the account).

  2. Then, add the Contribution Amount. This is a fixed amount of money you plan to add to your account each month.

    If you don't plan to make contributions (reconsider this choice, if possible!), leave it blank.

  3. Next, specify the Years of Growth. This is the number of years you will hold and contribute to your investment.

  4. Then, enter your Interest Rate. If your investment has a fixed rate, add it in.

    If your investment has a variable rate, add either the average rate or a low estimate (just to be safe).

  5. Finally, define the Compound Frequency. This is how frequently interest is added to your account.

Once you hit "Calculate" you'll see:

  • Your End Balance
  • Your Total Interest earned
  • Your Total Contribution amount

The results are displayed in the form of a pie chart. This show you how much of your ending balance was contributions vs. interest. To see how much your investment earns per year from interest and contributions click, "Show Details".

Best Ways to Invest for Steady Returns

There's no shortage of investment products on the market today. Below, review a few of the most popular investment vehicles to decide which is right for you.

Certificate of Deposit
CDs are accounts offered by banks and credit unions. A CD requires you to deposit an initial investment and leave it untouched for a fixed amount of time.

No withdrawals or regular deposits are allowed. In exchange for the illiquidity, the bank usually offers higher interest rates, which are fixed.

Pros: Safe, low-risk investments, FDIC or NCUA-insured, higher fixed interest rates, usually no monthly fees

Cons: Not liquid, penalties for early withdrawal, may require a high minimum deposit ($1,000), usually no contributions allowed

What CD should I invest in?

Quontic
Member FDIC

CD Rates - Up to 1.11% APY

  • $500 minimum opening deposit
  • FDIC insured
TermCD Rates
6 Months0.55% APY
1 Year0.60% APY
2 Years0.75% APY
3 Years1.00% APY
5 Years1.11% APY
CIT Bank
Member FDIC

CIT Bank Term CDs

  • Up to 0.50% APY
  • $1,000 minimum opening deposit
  • No monthly maintenance fee
TermCD Rates
6 Month0.30% APY
1 Year0.30% APY
13 Month0.30% APY
18 Month0.30% APY
2 Year0.40% APY
3 Year0.40% APY
4 Year0.50% APY
5 Year0.50% APY
Discover Bank
Member FDIC

Certificate of Deposit

  • 0.50% APY for 12-month term
  • 0.60% APY for 36-month term
  • 0.80% APY for 5-year term
CIT Bank
Member FDIC

CIT Bank No Penalty CD

  • 0.30% APY
  • Option to withdraw full balance and interest after 7 days of CD funding date
  • $1,000 minimum to open an account
  • 11 months
  • No monthly maintenance fee
CIT Bank
Member FDIC

CIT Bank Jumbo CDs

  • Up to 0.50% APY
  • $100,000 minimum opening deposit
  • No monthly maintenance fee
TermCD Rates
2 Year0.40% APY
3 Year0.40% APY
4 Year0.50% APY
5 Year0.50% APY
Discover Bank
Member FDIC

Discover CD Rates

  • $2,500 minimum opening deposit
  • No fees
  • FDIC insured
TermCD Rates
3 Months0.20% APY
6 Months0.25% APY
9 Months0.30% APY
1 Year0.50% APY
1.5 Years0.50% APY
2 Years0.55% APY
2.5 Years0.60% APY
3 Years0.60% APY
4 Years0.65% APY
5 Years0.80% APY
7 Years0.80% APY
10 Years0.80% APY
Continental Bank

High Yield CD - Earn up to 0.70%

  • 0.70% APY for 45-month term
  • 0.45% APY for 6-month term
Continental Bank

No Penalty CD - Earn up to 0.45% APY

  • 0.45% APY for 11-month term
  • 0.40% APY for 3-month term

Money Market Accounts
A money market account is like a savings account and a checking account combined. They offer higher interest rates like a savings account plus checking account features like an ATM card and checks.

Money market accounts are offered by banks and credit unions. The interest rates are variable, not fixed.

Pros: High liquidity, fairly safe, FDIC or NCUA-insured, reliable interest returns, minimal fees

Cons: Minimum balance requirement can be high, interest not as high as other investments, withdrawal limits (usually capped at 6 per month)

What money market account should I invest in?

CIT Bank
Member FDIC

CIT Bank Money Market Account - 0.45% APY

  • 0.45% APY
  • $100 minimum opening deposit
  • No monthly maintenance fee
Quontic
Member FDIC

Money Market Account - Up to 0.40% APY

  • 0.30% APY on $0 - $4,999.99 account balance
  • 0.35% APY on $5,000 - $149,999.99 account balance
  • 0.40% APY on $150,000+ account balance
Discover Bank
Member FDIC

Money Market Account

  • Earn 0.30% APY for balances under $100,000
  • Earn 0.35% APY for balances $100,000 and over
Axos Bank
Member FDIC

High Yield Money Market - 0.25% APY

  • 0.25% APY on all balance tiers
  • No minimum balance requirements
  • No fees to open or maintain account
  • Free Visa debit card
  • Free online bill pay, free limited checks, and free limited online check images
  • FDIC Insured
Axos Bank
Member FDIC

Business Savings

  • Earn 0.20% APY
  • $1,000 minimum opening deposit
  • No monthly maintenance fees with $2,500 minimum average daily balance
CIT Bank
Member FDIC

CIT Bank Money Market Account

  • Earn over 7x the national average
  • New customers can apply online with a minimum of $100 to open an account
  • Fund the account with electronic transfer, mail in check, or wire transfer
  • No monthly service fees
  • Deposit checks remotely and make transfers with the CIT Bank mobile app
CIT Bank
Member FDIC

Earn 7.5x National Average

Save smart and earn 0.45% APY at CIT Bank, a CreditDonkey recommended partner.

UFB Direct

UFB Premium Money Market - Earn 0.20%

  • Earn 0.20% APY on balances of $25,000 and above
  • Member FDIC

Bonds
Bonds are essentially a company's debt. You "lend" them money with your investment. The company then promises to pay it back at a specific time with a specific fixed interest rate.

In general, bonds are considered safe, predictable investments - but they're not without risk.

Pros: Generally safe, predictable/fixed returns, many bonds are rated by credit rating agencies to give you an idea of the company's credit worthiness

Cons: Not liquid, risk of loss if interest rates fall, some bonds require large upfront investment, interest rates aren't the highest

Stocks and bonds are often compared when talking about investments. But there are several (big) difference between the two. Read more in our guide on stocks vs. bonds.

Stocks
Unlike the previous three investments, stocks are usually considered high-risk. You're buying a small piece (or share) of a company.

The value of the share you buy will fluctuate depending on the company's performance. Stocks can plummet as easily as they can sky-rocket, so invest with caution.

Pros: Potential for big returns, can buy "fractional shares" of companies with high stock price, fairly easy to buy and sell, don't need a lot of money to invest

Cons: Much higher risk/volatility, can require a lot of research to pick your stocks, nerve-wracking to watch stock prices go up and down

How Compound Interest Works in Investing

© CreditDonkey

Compound interest is when you earn interest on the interest you've already earned.

Not all investments earn interest, such as stocks. But products like CDs, bonds, and money market accounts do earn interest. The reason people choose products like this is because compound interest is a powerful earning tool.

Compound interest is powerful because it grows at a faster rate as time goes on. Each new interest payment is higher than the last. Simple interest, on the other hand, is only calculated based on the principal, so it always stays the same.

Because of this, time can play a huge part in growing your money. The earlier you start accruing interest, the more you'll have. (And we mean a lot more.)

Want to see the power of compound interest in action? Check out our compound interest calculator to see how money grows and compare the investment returns with different rates.

What to Do Before You Invest

Investing is exciting, but don't dive in before you take care of these three things.

  1. Have a healthy emergency fund.
    It's important to have funds set aside to cover emergencies like car repairs or medical bills. If you or a family member were to lose a job, it can act as a much-needed safety net and pay for your necessities.

    Find out how much your emergency fund should be with our emergency fund calculator.

  2. Make sure your debt is manageable.
    If you have high-interest credit card debt, it's probably best to get it paid down to a more manageable amount. Aim to use no more than 30% of your credit limit.[1]

    Note: Fixed-term debt like mortgages or car loans are not as much of a problem. They have lower interest rates and a fixed payment plan.

  3. Have a retirement plan in place.
    No matter your age, it's important to know how you will save for retirement and to get started soon. Take advantage of all the tax-advantaged retirement accounts that you can.

    The easiest way is to contribute to your company's 401(k). If you don't have one, then prioritize investing in an IRA over other types of investments.

Bottom Line

Investing opens up a world of possibility. It can grow your money, fund your retirement, and act as a safety net when you need it. Before you invest, take time to understand your goals, expectations, and current financial health.

Whatever investing approach you take, do your homework and due diligence to pick the best investment for you. And remember: Invest sooner than later to take advantage of compound interest.

References

Holly Zorbas is a guardian of content and community at CreditDonkey, a personal finance comparison and reviews website. Write to Holly Zorbas at holly.zorbas@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

Read Next:

The Best Way to Invest $100

How to Invest $100

Compound Interest Calculator

Compound Interest Calculator

Savings Goal Calculator

Savings Goal Calculator

Best Ways to Invest $10,000

Best Ways to Invest $10000

Best Investment Apps for Beginners

Best Investment Apps for Beginners

Best Short Term Investment Options

Short-Term Investments


How to Invest Money: Make Money Work for You

Tips for Investing
To make money, you need to invest money wisely. Here are smart ways beginners can start investing in stocks and real estate, even with little money.
Leave a comment about Investment Calculator?



How and Where to Invest $1 Million Dollars

How to Invest $1 Million Dollars

How can you invest 1 million dollars? Many choose stocks and real estate but there are more ideas than you think. Here's what to do with that cash.

About CreditDonkey
CreditDonkey is a personal finance comparison website. We publish data-driven analysis to help you save money & make savvy decisions.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

†Advertiser Disclosure: Many of the offers that appear on this site are from companies from which CreditDonkey receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CreditDonkey does not include all companies or all offers that may be available in the marketplace.

*See the card issuer's online application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However, all information is presented without warranty. When you click on the "Apply Now" button you can review the terms and conditions on the card issuer's website.

CreditDonkey does not know your individual circumstances and provides information for general educational purposes only. CreditDonkey is not a substitute for, and should not be used as, professional legal, credit or financial advice. You should consult your own professional advisors for such advice.

About Us | Reviews | Deals | Tips | Privacy | Do Not Sell My Info | Terms | Contact Us
(888) 483-4925 | 680 East Colorado Blvd, 2nd Floor | Pasadena, CA 91101
© 2021 CreditDonkey Inc. All Rights Reserved.