Available at the App Store and Google Play™
Using the incredible, but simple mathematical concept, of Compound Interest, this App quickly calculates just how much you need to invest each year to reach your financial goals—be it $1 Million or even more.
This is how it works:
The first Section:
Click on Let’s Get Started
Here’s the Example:
Start with $0, and add $15,000 every year, earn 10% after-tax, and you will end up with over $1 Million in 21 years. And…if you leave your money invested at 10%, you will be able to receive an annual income of $105,604 without touching your principal.
Now it’s Your Turn!
Input your own investment goals and see where they take you.
1) $10,000 a year at 8%
Takes you 28 years to reach $1 Million
And gives you an annual income of $82,373
2) $20,000 a year at 7%
Takes you 22 years
And gives you an annual income of $73,411
3) $5,500 a year at 8%
Gets you $1 Million after 35 years with an annual income of $81,885.
The calculator gives you a quick idea of what it takes to reach your million.
Want a little more flexibility?
Create a ‘What if’ Chart
This chart gives you the ability to go above, beyond, or below $1 Million.
1) Let’s start with $5,000
Add $3,000 a year
Assume a 5% return
In 40 years, you would still finish up with over $415,000
2) Want to customize the years and watch your money grow?
Year 1 Invest $1,000 at 7%, Year-end balance is $1,070
Year 2 Invest $2,000 at 7%, Year-end balance is $3,285
Year 3-15 Invest $3,000 a year at 7%
Year 3 Year end balance is $6,725
Year 4 year-end balance is $10,406
Year 5 year-end balance is $14,344
Year 6: $18,588; Year 7: $23,067; Year 8: $27,892; Year 9: $33,054;
…Year 15 $72,568
Add $20,000 in Year 16 and let it ride at 8%–
Year 20 $136,012
Year 40 $633,946
Then, email the spreadsheet to yourself.
You can use the ‘What if” Chart to calculate the effect of a spending (or savings) habit.
We’ll go with the often used $5 a day coffee or $5 a day in savings by bringing your lunch to work habit:
What does this really mean?
Use the calculator.
If you invested $5 a day instead of spending it on coffee (or lunch out), how much does this habit mean to your future?
We’ll assume $5 a day invested, 5 days a week, for 50 weeks a year= $1,250 a year.
$1,250 input into the “What if” Calculator at 8% would mean a retirement boost of:
$61,779 after 20 years
$349,726 after 40 years.