How to Use Our Investment Forecaster
An investment forecaster is a tool that provides an estimated projection of how your invested money could grow over time using the power of compound interest.
To use it, we have created an easy, user-friendly interface. Follow this guide to understand each input and how to use the forecaster effectively:
Step-by-Step Guide
The typical price of a single share of the stock, ETF, or the average price of multiple stocks and ETFs in your portfolio.
How to Use: Enter the average price per share. This value can be found on your trading platform or by calculating the average price of the stocks and ETFs in your portfolio.
The amount of money you plan to invest initially when you start.
How to Use: Enter the total amount you plan to invest at the beginning. This should be the amount you are ready to commit as your initial investment.
The amount of money you plan to invest every month after your initial investment.
How to Use: Enter the amount you will add to your investment each month. Regular contributions can significantly impact your investment growth.
The number of years you plan to hold your investment in the stock, ETF, or the average holding period for your portfolio of multiple stocks and ETFs.
How to Use: Enter the number of years you plan to keep your investment. Longer holding periods can lead to higher returns due to compounding.
The annual dividend income expressed as a percentage of the share price for the stock, ETF, or the average dividend yield of multiple stocks and ETFs in your portfolio.
How to Use: Enter the expected dividend yield percentage. This information can be found on financial websites or your trading platform.
How often dividends are paid out by the stock, ETF, or the average distribution frequency of multiple stocks and ETFs in your portfolio (e.g., monthly, quarterly, annually).
How to Use: Select the frequency of dividend payments. This can usually be found in the stock or ETF details.
Compound Annual Growth Rate of the dividend, which shows how much the dividend is expected to grow each year for the stock, ETF, or the average dividend growth rate of multiple stocks and ETFs in your portfolio.
How to Use: Enter the expected growth rate of the dividend. This can be found in historical performance data of the stock or ETF.
Compound Annual Growth Rate of the share price, which shows how much the share price of the stock, ETF, or the average growth rate of multiple stocks and ETFs in your portfolio is expected to grow each year.
How to Use: Enter the expected annual growth rate of the share price. This can be based on historical data or future projections.
The percentage of your investment returns that will be paid as taxes each year.
How to Use: Enter your annual tax rate. This will vary based on your tax jurisdiction and personal tax situation.
A plan that automatically reinvests the dividends to purchase more shares of the stock, ETF, or reinvest in multiple stocks and ETFs in your portfolio instead of paying out cash.
How to Use: Toggle the switch to enable or disable the DRIP. Enabling it means your dividends will be reinvested, potentially increasing your returns over time.
Once all inputs are filled, click the Generate button to see the forecast of your investment growth over time.