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Close this
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The NAOI Return Required Calculator
Use this calculator to
estimate the annual Rate Of Return required to meet
one of your goals. The entry fields are explained below the calculator.
Note 1:
Return Rates calculated are estimates only
and are based on a series of assumptions.
Calculators using different assumptions will
produce different results.
Note 2: For percentages enter whole numbers - e.g. for 20% enter 20
Note 3: Do NOT enter commas, decimal points or dollar signs in any of your
numbers - e.g. for $100,000.00 enter 1000000
your
goal:
Your Goal -
This is the monetary goal you want to achieve as a result of your investment
activities by
the end
of the Number of
Years
you specify.
Initial Deposit
- This is the amount of money you are starting with. Obviously this number can
be zero if you are
just
beginning your investing life.
Monthly Deposit
- This is the amount of money you are willing to add to your investment plan
each month.
Number of Years
- This is the
amount of time until you reach your goal.
Your Tax Rate %
- This is your tax bracket.
If your goal
scenario is for
your IRA account
or other tax-sheltered plan just leave
this entry at zero.
Calculate -
When you click this button you will see the Required Return and the Final Total
displayed for
your goal. The Required Return is the
percentage you will need to
achieve
each year
to reach your goal amount. The Final Total shows
the
resulting
$ total.
Note that it will vary slightly from your stated
goal due to
rounding factors.
Reset - This
button clears your entries.
Required Return %
- This is the return percentage that you will need to achieve EACH YEAR of your
portfolio holding period to achieve your specified goal.
Final Total $
- Because of necessary "rounding" error the final total amount you
will have at the end of your holding period will be slightly higher than your
specified goal. This is the final dollar amount.
Using The Results
This calculation is critical for
determining the feasibility of your goals and also in determining how you need
to structure a portfolio to realize your goal. The higher the Required Return,
the higher the level of risk you will need to
take OR the more time you will need
to devote to your investing activities.
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