Two figures in, a clear answer out. The compound growth calculator uses deposit bal, desired savings, desired savings, initial deposit, how much?, principal bal, apy, ct1, ct2, ct3, annual growth rate, periodic growth rate, infl, m, how often?, interest rate, select1, term, when?, var1 and var2 to produce balance int total, periodic dep rc and initial dep r, applying the standard relationship for this problem in the order the calculation actually needs it.
What Is the Compound Growth Calculator?
The compound growth calculator takes deposit bal, desired savings, desired savings, initial deposit, how much?, principal bal, apy, ct1, ct2, ct3, annual growth rate, periodic growth rate, infl, m, how often?, interest rate, select1, term, when?, var1 and var2 and turns them into balance int total, periodic dep rc and initial dep r.
It is the kind of calculation you would otherwise do on the back of an envelope: mechanical, repeatable and easy to get subtly wrong without noticing.
How the Compound Growth Figure Is Built
Each result is calculated from the ones before it, so the working is fully visible. That matters when the answer is going to be quoted to somebody else and you need to be able to explain where it came from.
The figures are exactly as good as the assumptions underneath them. Check the rates, the periods and the tax treatment before you rely on the result.
Reading the Result Sensibly
A small change in an input can move the result by much more than you would expect, particularly where the calculation divides by one of the figures you supplied. That is worth understanding before you rely on a figure.
For anything that will be committed to, write the inputs down beside the result. A number you can reproduce is worth far more than one you cannot explain.
A Worked Example
Working through an example, with deposit bal set to 10, desired savings set to 5, desired savings set to 2, the calculator returns chart of 1, and periodic dep rc of 10, and message numb of 24. Substitute your own figures and the same steps produce the same kind of answer.
Frequently Asked Questions
What do I need to work out balance int total?
Enter deposit bal, desired savings, desired savings, initial deposit, how much?, principal bal, apy, ct1, ct2, ct3, annual growth rate, periodic growth rate, infl, m, how often?, interest rate, select1, term, when?, var1 and var2. The calculator then works through the relationship and reports balance int total, periodic dep rc and initial dep r.
What does the compound growth actually calculate?
It takes deposit bal, desired savings, desired savings, initial deposit, how much?, principal bal, apy, ct1, ct2, ct3, annual growth rate, periodic growth rate, infl, m, how often?, interest rate, select1, term, when?, var1 and var2 and converts them into balance int total, periodic dep rc and initial dep r using the standard relationship for this problem. Each step is applied in turn, so every output is traceable back to the numbers you typed in.
How should I enter deposit bal?
Use the value you actually have, in the unit shown next to the field. Enter every value in the same unit system. The calculator assumes the figures you supply are consistent, so it cannot correct a mistake that happens before the calculation starts.
Why does a small change in one value move the answer so much?
That happens when an output depends on a ratio, because dividing by a small number magnifies any change in it. Check the units first, then check whether the value you entered is in the range the relationship was designed for.
Is the answer exact?
It is as exact as the formula and the inputs allow. The method itself is the standard one for this problem, so the only sources of error are the figures you enter and the precision you ask for.