Years Contributed
Years Contributed Calculator

Imagine you are 22 and you want to start contributing more towards your retirement. So you are considering getting a second job at night driving for uber and you believe you can make an extra 6k a year doing this. But you don't want to be driving for uber when you are 50. So you want to figure out how this might impact you financially if you did this for 10 years and then let that money sit and grow until you reached retirement. This calculator lets you create that scenario.

Warning

Keep in mind that this calculator assumes a rate of return of 7% a year. This is a hypothetical rate of return and is used to create hypothetical scenarios. You may not be able to achieve this rate of return, even long term. Higher rates of return, such as 7%, carry higher risk and volatility. If you want to change the rate of return you can change it in the advanced options.

Useful Scenarios

Below are some other scenarios that might help you understand how you can use this calculator better.

Scenario #1

You have recently considered moving to a cheaper apartment to save money. However eventually you want to move back into a nice apartment like the one you are currently living in. The cheaper apartment would allow you to save an additional 4k a year. And you want to know how this decision will impact you financially if you moved to the cheaper apartment for 2 years, or 4 years, or 8 years.

Scenario #2

You have decided that you want to cut back your spending. You are going to cut out 2k a year. And you want to see how this might help you if you could do it for 6 years and then let that accumulated money grow over time.

Scenario #3
10 years of investing and then investing that for 30 years represented with suitcase

The suitcase represents contributing money. The crossed out suitcase represents not contributing anything, but the money that has already been contributed is still growing.

Tabs

Value

This section shows how much you would have if you made yearly or monthly contributions for the number of years entered in the years contributed input. Then invested the resulting amount for the number of years entered in the end age field.

You are able to select whether you want to make the contributions in yearly or monthly increments by using the advanced options yearly toggle.

Yearly

This section shows how much you would have each year as investments grow. Seeing the end result after a long period time is useful. However if you want to see how much you have every step of the way, then you can find that here.

Contributions

If you are struggling to decide how many years you want to make contributions, this tab will help.

This section shows you how the number of years you contribute impacts the value after a number of years. Along the x axis you can see the number of years that contributions were made and along the y axis you can see the value after a certain number of years.

So for example if years shown = 40 and you look at x = 8, y will represent the Yearly Contributions being made for 8 years and then the resulting value sitting and growing for 32 years (40 - 8).

Advanced Options

Clicking the Advanced Options button will open a popup with a number of fields. The investment growth rate field allows you to edit the annualized growth rate that the contribution amount is calculated with. Doing so allows you to see how a lower or higher growth rate affects the end value after the provided contributed timespan and end age. The age field allows you to enter your current age. Doing so will display how old you will be when the investment end value is reached. The yearly switch toggles whether the investment contributions are made monthly or yearly. The default is monthly contributions unless it has been previously changed.

Disclaimer
The content on this website is for informational, educational, and entertainment purposes only. And the information on this website are the Author's own opinions. We are not financial advisors. Consult with a financial professional before making any serious financial decision. None of the content on this website is intended provide any specific investment advice. By using this website you accept our full disclaimer, which you can find in the link below.

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