What is the stock market calculator?
This Stock Market Calculator is an investment calculator that enables you to plan the growth of your trading and investment account for the future.
This investment calculator also enables you to enter your initial investment capital, how much you will add to your account each year and when you will start making withdrawals (and how much) to support your future lifestyle. This will give you a good idea of how your trading account will grow and support your ideal life in the future. The more you put in and the longer you wait before pulling money out the better
Let compound interest work for you!
Withdrawals and tax on profits impact your final wealth, use this Stock Market Calculator so you’ll know how much you can withdraw from your investments while still allowing your wealth to grow.
What is an investment calculator for?
An investment calculator is a handy stock calculator that you use to test different input parameters for your investment plan.
This investment calculator can be used for any stock market investment or stock trading portfolio. The calculations help you determine the investment timeframe and the return of investments with the growth of time. This is important to ensure that your account growth exceeds the pace of inflation even once you start making withdrawals. If it does not then your wealth will fall in real terms over time. Our stock market investments must grow at a rate which exceeds inflation!
Whether you’re a seasoned investor or an average investor, this investment calculator will help you calculate your future wealth starting from your initial investment with a fixed rate of return and time period of investment along with different investment assumptions.
How does the stock market calculator work?
The stock market calculator uses the input assumptions you provide to project your future wealth and account growth taking into account returns, tax, savings and withdrawals from your account.
For each year in the wealth projection, the starting capital grows by the target rate of return and then the tax is taken off the return and adjustments are made for the savings and withdrawals you have assumed.
The final figure forms the starting equity for the next year in the calculations of the stock market calculator. This investment calculator therefore provides you with realistic, after tax projections of your future wealth based on the assumptions you provide.
How to use the investment calculator
Step 1: Input your starting capital
Step 2: Adjust the deposit/withdrawal and tax scenarios to match your situation, savings ability and lifestyle plan.
Step 3: Work with different scenarios in this investment calculator to help you understand how successful trading will help you achieve your ideal life.
Step 4: Enter your name and email at the end of the calculator to have your results emailed to you and receive free training on how to improve your stock trading profits to generate the results you want.
Make realistic assumptions in the stock market calculator
While this stock market calculator allows you to freely change your assumptions like return on investment, initial capital and savings, it is important for you to get a realistic picture of what is possible by setting realistic stock trading objectives. For guidance on how to set realistic return objectives, read this blog post and then us these insights to set your trading objectives in this investment calculator.
Remember that the higher your target compound annual returns, the larger your drawdown will be, so you need to ensure you are comfortable with the risk you are likely taking on to generate your returns.