Calculate Future Value of Investment with Compound Interest

Posted by Grace under Investing on August 23, 2015

Want to know calculate future value of investment with compound interest whether you’re investing in stocks, mutual funds, or bonds? A reader asked; How do I know the future value of my investment? I invest $10,000 in stocks today. My plan is to stay invested for 10 years or more. What would be the future worth of my investment?

The above question was sent InvestmentTotal.com last March 25, 2015. From Michael Q from Los Angeles, California, USA via email message.

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InvestmentTotal.com Response

You need to determine the yearly interest rate of your investment to know the future value of your investment. Second, the future value of your investment will also depend if you will reinvest the profits and the dividends (since you are investing in stocks). Third, you need to use compound interest calculator.

How to Calculate Future Value of Investment with Compound Interest?

In my own calculation using my favorite compound interest calculator, the following data are the sample calculation of the future value of $10,000 and we may assume that your stock investments are gaining 12-15 percent per year.

Related: Compound Interest Calculator

Future Value of $10,000

If your $10,000 (ten thousand dollars) investment is earning 10% every year and invested for specific years;

$10,000 will turn into $16,105 after 5 years with a total interest of $6,105
$10,000 will turn into $25,937 after 10 years with a total interest of $15,937
$10,000 will turn into $41,772 after 15 years with a total interest of $31,772
$10,000 will turn into $67,275 after 20 years with a total interest of $57,275
$10,000 will turn into $108,347 after 25 years with a total interest of $98,347
$10,000 will turn into $174,494 after 30 years with a total interest of $164,494

If your $10,000 (ten thousand dollars) investment is earning 15% every year and invested for 30 years, your invested capital will turn into $662,117.72 or a total interest of $652,117.72

If your $10,000 (ten thousand dollars) investment is earning 20% every year and invested for 30 years, your invested capital will turn into $2,373,763.14 or a total interest of $2,363,763.14

Related: Double Your 10,000 Dollars

As you have noticed, your invested capital went to $10,000 (ten thousand dollars) into millions. That’s the power of compound interest. Believe it or not, but it’s true. The earlier you invest, the more potential your invested capital will grow – not just doubled but awesomely multiplied.

Important: There is no such thing as guaranteed “future value”. You should be aware that in investing, you may lose your invested capital or gain huge profits in short period of time. Do you have any ideas on how to calculate future value of investment with compound interest? Share it in the comment box, happy investing!

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