Find out how much you could gain by developing a discipline of regular saving. The Regular Investment calculator allows you to experiment with a variety of saving/investment frequencies.
Imagine that you save a small amount, say £1000, each month and put it in your bank account that offers 5% rate on your deposits. Assuming that the savings find their way to the bank regularly for 2 years, the amount you earn at the end of this period will be about £1290 on top of your original investment of £2400. However, your gains jump to £3243 if you choose to invest in a index tracker fund that grows at an average rate of 12%. Such and even higher growth is easy to achieve when the power of compounding is applied to regular investments in the stock market.
The Future Value calculator will help you predict earnings on your investment provided your estimates of growth and time are correct.
Say you invest £2000 in a business that has good potential for growth over the next 2 years. And, say you expect it to grow at a steady rate of 25% during this period. If your stock performs according to your expectations you will earn £1125 on top of your investment at the end of the period.
A slight twist to the Future Value formula yields the Rate of Return calculator. The calculator can be used to find the Required Rate of return when the Present Value, the Future Value and the Number of Years are known.
For example, if your investment capital today is £4500 and you expect it to grow to £12000 over a period of 5 years, then the required rate of return should be about 126%.
