Wondering how much a monthly investment contribution might amount to in the future or the potential future value of your money? Use this Dave Ramsey Investment Calculator to get an idea.
1. Enter your current age.
2. Enter either the age you plan to retire or the age you plan to need the money. Want to know how an investment might do over the next ten years rather than for retirement? Enter a number that will reflect when you will want to access the money.
3. Enter how much you have saved and how much you plan to contribute monthly.
4. Enter an annual rate of return. Of course, we don't know what your annual rate of return will be, so we have to take a best guess. This number will change depending on what type of investments you plan to put the money in, how aggressive you plan to be, and how the investment does. Talk with an advisor to get an idea of what a good number would be for your situation. I tend to use an 8% return for investments invested more aggressively and a 4-6% return for investments with a shorter-time horizon or that are less aggressive.
5. Click Calculate.
6. See your results. I find the pie chart that compares your initial investment, your contributions, and the growth to be particular helpful.