Investment Calculator
Calculate the future value and return of your investment. The calculator takes compound interest, inflation, and taxes into account.
Investment Calculator
Calculate the future value and return of your investment
What is the Investment Calculator?
The Investment Calculator is a professional tool that helps you understand the long-term effects of investments. The calculator takes into account:
- Initial investment – the initial invested amount
- Monthly investments – regular additional investments
- Annual return – the expected annual interest rate
- Investment period – how many years you plan to invest
- Inflation – the decrease in the value of money
- Tax rate – the tax payable on investment returns
How to use the Investment Calculator?
- Enter the initial investment – the initial invested amount
- Monthly investment – if you plan regular additional investments
- Annual return – the expected annual interest rate as a percentage
- Investment period – how many years you plan to invest
- Inflation – the expected annual inflation rate
- Tax rate – the percentage of tax payable on investment returns
- Calculate – click the „Calculate” button
Results of the Investment Calculator
The calculator displays the following results:
- Future value – the expected value of the investment at the end of the specified period
- Total investment – the total invested amount (initial + monthly investments)
- Total return – the total profit from interest
- Inflation-adjusted value – the future value in today's purchasing power
- After tax – the value remaining after taxation of returns
- Average annual return – the average annual return of the investment (CAGR)
Investment Breakdown
The calculator also provides a detailed breakdown of the investment:
- Initial investment – the initial invested amount
- Monthly investments – the amount of regular additional investments
- Interest – the return from compound interest
- Taxes – the tax payable on returns
Investment Growth
The calculator also creates a visual chart showing the growth of the investment over the years. This helps you understand:
- How the investment grows over time
- The effect of compound interest on long-term investments
- The benefits of regular investments
- The growth rate of the investment
Why is the Investment Calculator important?
The Investment Calculator helps you:
- Plan future financial goals
- Compare different investment strategies
- Understand the power of compound interest
- Set realistic goals for your investments
- Decide on investment amounts and periods
The Effect of Compound Interest
Compound interest is one of the most powerful tools in investing. It means that you earn interest not only on your original investment but also on the accumulated interest.
Example: If you invest 1 million forints with an 8% annual return:
- After 5 years: 1,469,328 HUF
- After 10 years: 2,158,925 HUF
- After 20 years: 4,660,957 HUF
- After 30 years: 10,062,657 HUF
Inflation and Investments
Inflation reduces the purchasing power of money. Therefore, it is important to consider the real return (inflation-adjusted return).
If the investment return is 8% and inflation is 3%, then the real return is 5%.
Taxation and Investments
You have to pay tax on investment returns. In Hungary, you have to pay 15% personal income tax on investment returns.
Example: If you realize a return of 100,000 HUF, you have to pay 15,000 HUF in tax, so the net return is 85,000 HUF.
Investment Strategies
Long-term investment
The advantages of long-term investments (10+ years):
- Greater compound interest effect
- Lower risk from short-term fluctuations
- Lower tax burden (long-term capital gains allowance)
Regular investment
The advantages of regular investments:
- Lower initial capital requirement
- Risk reduction (dollar-cost averaging)
- Gradual wealth building
Frequently Asked Questions
What investment return can I expect?
Investment returns depend on the type of investment. In general:
- Bank deposits: 2-6%
- Bonds: 3-8%
- Stocks: 7-12% (long-term)
- Real Estate: 4-8%
When should you start investing?
The earlier, the better! Due to compound interest, early investments have a greater impact on future wealth.
How much should I invest?
General rule: invest 10-20% of your monthly income. But this depends on individual circumstances and goals.
Legal Information
The results of the Investment Calculator are for informational purposes only. Always consult a financial advisor before making investment decisions. Past returns do not guarantee future results.