How much do I need to save each month in order to have $______ ?


Return %

Years

4%

6%

8%

10%

12%

1

12.22  

12.34  

12.45  

12.56

12.68

5

66.23

68.77

73.32

77.36

81.67

10

146.94

163.88

182.13

204.38

230.04

15

245.29

290.82

343.59

412.95

499.58

20

365.13

462.04

583.20

755.44

989.26

25

485.43

692.99

938.75

1317.83

1879.85

30

689.12

1004.52

1466.38

2241.29

3494.96

35

905.97

1424.71

2249.33

3757.66

6430.96

40

1170.22

1991.49

3411.20

6247.62

11764.77

How Table Works:

Example #1:
You have established a savings goal of $500,000.  You need to accomplish your goal in 20 years.  How much will you need to save each month in order to accomplish your goal?

Three know factors are needed:

#1        Dollar amount goal                                         $500,000
#2        Projected return % on investments                 10%
#3        Number of years to reach goal                        30 Years

First find where 10% and 30 years on the table intersect:  The factor given is 2241.29

Second, divide your goal of $500,000 by 2241.29.  The answer is $223.08.
Therefore you will need to save $223.08 each month for 30 years in order to accomplish your goal.

Example #2:
You have established a savings goal of $20,000.  You need to accomplish your goal in 5 years.  How much will you need to save each month in order to accomplish your goal?

Three know factors are needed:

#1        Dollar amount goal                                         $20,000
#2        Projected return % on investments                 6%
#3        Number of years to reach goal                        5 Years

First find where 6% and 5 years on the table intersect:  The factor given is 68.77

Second, divide your goal of $20,000 by 68.77.  The answer is $290.82.
Therefore you will need to save $290.82 each month for 5 years in order to accomplish your goal.

I am saving $____ annually.  How much will it be worth in ___ years?

Return %

Years

6%

8%

10%

12%

5

5.64

5.87

6.11

6.35

10

13.18

14.49

15.94

17.55

15

23.28

27.15

31.77

37.28

20

36.79

45.76

57.28

72.05

25

54.87

63.11

98.35

133.33

30

79.06

113.28

164.49

241.33

35

111.44

172.32

271.02

431.66

40

154.76

259.06

442.59

767.09

45

212.74

386.51

718.91

1358.23

 

 

 

 

 

 

How this table works:

Example #1:
You are investing $4,000 in an IRA each year.  You plan to do this for the next 30 years.
You project you can earn 10% on your investment in a good mutual fund.  How much will you have in your investment account in 30 years?

In using this table, three know factors are needed:

#1        Dollar amount to be invested each year:                     $4,000
#2        Projected return % on your investment:                     10%
#3        Number of years you plan to invest:                           30 Years

                       
First, find where 10% and 30 years on the table intersect:  The factor given is 164.49

Second, multiply 164.49 X $4,000.  The answer is $657,960.

 

Example #2:
You are investing $2,000 in a mutual fund each year.  You plan to do this for the next 10 years. You project you can earn 8% on your investment in a good mutual fund.  How much will you have in your investment account in 10 years?

In using this table, three know factors are needed:

#1        Dollar amount to be invested each year:                     $2,000
#2        Projected return % on your investment:                     8%
#3        Number of years you plan to invest:                           10 Years

First, find where 8% and 10 years on the table intersect:  The factor given is 14.49

Second, multiply 14.49 X $2,000.  The answer is $28,980.

 

 © copyright - 2000, Ethan Pope