| Calculated Results | |
|---|---|
| Total Interest | 11,517 |
| Total Contribution | 30,000 |
| End Balance | 61,517 |
| Infaltion Adjusted End Balance | 53,065 |
| End Principal | 50,000 |
| Year | Begin Principal | Begin Balance | Interest | End Principal | End Balance | |
|---|---|---|---|---|---|---|
| 1 | 20,000 | 20,000 | 1,365 | 26,000 | 27,365 | |
| Month | 1 | 20,000 | 20,000 | 100 | 20,500 | 20,600 |
| Month | 2 | 20,500 | 20,600 | 102 | 21,000 | 21,202 |
| Month | 3 | 21,000 | 21,202 | 105 | 21,500 | 21,808 |
| Month | 4 | 21,500 | 21,808 | 108 | 22,000 | 22,415 |
| Month | 5 | 22,000 | 22,415 | 110 | 22,500 | 23,025 |
| Month | 6 | 22,500 | 23,025 | 112 | 23,000 | 23,638 |
| Month | 7 | 23,000 | 23,638 | 115 | 23,500 | 24,252 |
| Month | 8 | 23,500 | 24,252 | 118 | 24,000 | 24,870 |
| Month | 9 | 24,000 | 24,870 | 120 | 24,500 | 25,490 |
| Month | 10 | 24,500 | 25,490 | 122 | 25,000 | 26,112 |
| Month | 11 | 25,000 | 26,112 | 125 | 25,500 | 26,738 |
| Month | 12 | 25,500 | 26,738 | 128 | 26,000 | 27,365 |
| 2 | 26,000 | 27,365 | 1,807 | 32,000 | 35,172 | |
| Month | 13 | 26,000 | 27,365 | 137 | 26,500 | 28,002 |
| Month | 14 | 26,500 | 28,002 | 139 | 27,000 | 28,641 |
| Month | 15 | 27,000 | 28,641 | 142 | 27,500 | 29,283 |
| Month | 16 | 27,500 | 29,283 | 144 | 28,000 | 29,927 |
| Month | 17 | 28,000 | 29,927 | 147 | 28,500 | 30,574 |
| Month | 18 | 28,500 | 30,574 | 149 | 29,000 | 31,223 |
| Month | 19 | 29,000 | 31,223 | 152 | 29,500 | 31,875 |
| Month | 20 | 29,500 | 31,875 | 154 | 30,000 | 32,530 |
| Month | 21 | 30,000 | 32,530 | 157 | 30,500 | 33,186 |
| Month | 22 | 30,500 | 33,186 | 159 | 31,000 | 33,846 |
| Month | 23 | 31,000 | 33,846 | 162 | 31,500 | 34,508 |
| Month | 24 | 31,500 | 34,508 | 164 | 32,000 | 35,172 |
| 3 | 32,000 | 35,172 | 2,275 | 38,000 | 43,447 | |
| Month | 25 | 32,000 | 35,172 | 176 | 32,500 | 35,848 |
| Month | 26 | 32,500 | 35,848 | 178 | 33,000 | 36,526 |
| Month | 27 | 33,000 | 36,526 | 181 | 33,500 | 37,207 |
| Month | 28 | 33,500 | 37,207 | 183 | 34,000 | 37,890 |
| Month | 29 | 34,000 | 37,890 | 186 | 34,500 | 38,576 |
| Month | 30 | 34,500 | 38,576 | 188 | 35,000 | 39,265 |
| Month | 31 | 35,000 | 39,265 | 191 | 35,500 | 39,955 |
| Month | 32 | 35,500 | 39,955 | 193 | 36,000 | 40,649 |
| Month | 33 | 36,000 | 40,649 | 196 | 36,500 | 41,345 |
| Month | 34 | 36,500 | 41,345 | 198 | 37,000 | 42,043 |
| Month | 35 | 37,000 | 42,043 | 201 | 37,500 | 42,744 |
| Month | 36 | 37,500 | 42,744 | 203 | 38,000 | 43,447 |
| 4 | 38,000 | 43,447 | 2,772 | 44,000 | 52,219 | |
| Month | 37 | 38,000 | 43,447 | 217 | 38,500 | 44,164 |
| Month | 38 | 38,500 | 44,164 | 220 | 39,000 | 44,884 |
| Month | 39 | 39,000 | 44,884 | 222 | 39,500 | 45,606 |
| Month | 40 | 39,500 | 45,606 | 225 | 40,000 | 46,331 |
| Month | 41 | 40,000 | 46,331 | 227 | 40,500 | 47,058 |
| Month | 42 | 40,500 | 47,058 | 230 | 41,000 | 47,788 |
| Month | 43 | 41,000 | 47,788 | 232 | 41,500 | 48,520 |
| Month | 44 | 41,500 | 48,520 | 235 | 42,000 | 49,255 |
| Month | 45 | 42,000 | 49,255 | 237 | 42,500 | 49,992 |
| Month | 46 | 42,500 | 49,992 | 240 | 43,000 | 50,732 |
| Month | 47 | 43,000 | 50,732 | 242 | 43,500 | 51,474 |
| Month | 48 | 43,500 | 51,474 | 245 | 44,000 | 52,219 |
| 5 | 44,000 | 52,219 | 3,298 | 50,000 | 61,517 | |
| Month | 49 | 44,000 | 52,219 | 261 | 44,500 | 52,980 |
| Month | 50 | 44,500 | 52,980 | 264 | 45,000 | 53,744 |
| Month | 51 | 45,000 | 53,744 | 266 | 45,500 | 54,510 |
| Month | 52 | 45,500 | 54,510 | 269 | 46,000 | 55,278 |
| Month | 53 | 46,000 | 55,278 | 271 | 46,500 | 56,050 |
| Month | 54 | 46,500 | 56,050 | 274 | 47,000 | 56,823 |
| Month | 55 | 47,000 | 56,823 | 276 | 47,500 | 57,599 |
| Month | 56 | 47,500 | 57,599 | 279 | 48,000 | 58,378 |
| Month | 57 | 48,000 | 58,378 | 281 | 48,500 | 59,159 |
| Month | 58 | 48,500 | 59,159 | 284 | 49,000 | 59,942 |
| Month | 59 | 49,000 | 59,942 | 286 | 49,500 | 60,729 |
| Month | 60 | 49,500 | 60,729 | 289 | 50,000 | 61,517 |
An investment on a bond, CD or bank saving account will have an annual coupon rate, for example 6%. For simple interest, the interest earned is calculated based on: \[ Interest = Principal \times Periods \times Rate \] Where Periods is number of periods for the calculated duration, Rate is the periodic rate. For example, for monthly interest earned, the monthly rate for a coupon of 6% is \( 0.06\div 12 = 0.005 \) Take the 6% coupon example, for a principal of 10,000, the monthly interest is \( 10000 \times 0.005 = 50 \).
If the interest is compounding, based on the compounding frequency, interest from current compounding period will be added into the principal for the next period and will earn interest on that interest. The compounding frequency determine when to move the interest into principal. For example, if the compounding frequency is monthly, then at each month end, the interest earned at that month will be added into principal and the interest earned on the next month will be based on the increased principal. You can think of compounding like an interest income reinvestment process. The interest earned during a compound period instead of paid to the investor, it is kept into the principal as a new investment and thus will increase the principal amount.
Interest earned if not got paid is normally compounding. For example, if you save on an bank saving account, the interest calculated daily and then added into your bank accounting balance. That is equal to interest compounding daily.
Tax is a big component in the investment. Most of the interest earned from investment such as CD and bonds will subject to income tax. Therefore, the calculator here will deduct the interest earned by the amount of tax you will need to pay. There are some investments earn tax free interest, such as certain municipal bond. However, those investment will normally have a lower interest rate.
The inflation adjusted value tells you the real value of the money. The tax and inflation adding together will each up the majority of your investment so that it is hard for you to earn real money through a lower interest rate investment.