How do I calculate my projected compound interest return from an investment ?

Hi anon,

Yes, there is a formula. Your return would be

FV = PV (1 + n) ^ t

Where

• n is your return per time period (e.g. 5% would be 0.05)

• t is the number of time periods you wish to compound for

• FV is the future value

• PV is the present value.

So for example, 4% p.a. compounded returns on $10K over 7 years would mean that FV = $10000 x (1.04)^7

Alternative you may use a compound interest calculator to assist you.

Sometimes, interest is compounded not once a year, but maybe monthly, hence 12 times a year.

In this case, using the previous example, n would be 0.04/12 and t would be 7 x 12 = 84.

If you are doing regular additions to your investment, then you would be better off using a compound interest calculator as it gets a bit too complete to calculate on a simple calculator.

This!

http://www.moneychimp.com/calculator/compound_i...​​​