Savings Plan Final Value
Calculates the wealth that grows from a monthly savings rate over the term. Any existing starting capital earns interest too.
Type values, assign them with the value keys and press "Solve". It is the same financial calculator as under "Calculator" in the menu above.
Every installment earns interest until the end – early installments longer, late ones shorter. The bracket (qⁿ−1)/(q−1) sums up all these differently compounded contributions at once. q is the growth factor per period: from the effective rate p.a. the matching monthly factor is derived via the ¹ᐟᵐ root. Takeaway: it is not the sum of the deposits that counts, but how long each dollar is allowed to work.
Final value of an ordinary annuity; the effective rate is converted into the periodic rate.
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