Follow invidion on Twitter
 
 

Investment Yield (Growth Rate) Calculator - how well have your savings or investments performed?

 

Click here to launch the calculator

This calculator works out the annualised growth rate of an investment over a number of years based upon the original investment.

 

It can calculate the growth rate of single-premium investment (such as an investment bond) or a regular premium investment (such as a personal pension).

 
Please note that the calculator assumes that no withdrawals have been taken from the investment during the period in question.
 
While calculating a yield or growth rate for a single-premium investment is relatively straightforward, calculating an average growth rate based on a regular monthly contribution is more difficult. In effect it is more of a very close approximation.
 
For instance, if you were to pay £50 per month into a savings plan for ten years and at year ten it was worth £10,000, in order to calculate the true growth rate exactly, you would need to calculate the number of units purchased each month, then track the growth of those specific units for the remainder of the term. This would effectively entail a polynomial order of 120 separate calculations to solve.
 
Also you would need accurate details of each payment, and assuming you actually had all the information, it would still be a time-consuming task. Therefore, if this is not possible, the alternative method is to use an iterative approach, incorporating the Newton-Raphson root-finding method (similar to methods used in Excel functions such as RATE). This is the method used by this calculator.
 
The figures projected by the calculator are only for guidance purposes, and are by no means guaranteed.
 
 
 
 
 

Recent Financial Topics

 

The Prince of Wales was one of the first to get an early preview of the machine as he officially opened the National Automotive Innovation Centre at Warwick University.

Jaguar Land Rover reveals new electric self-driving pod to be used on UK roads next year
18/02/2020 01:14 PM

Ford has suspended deliveries of the £20,500 crossover and is issuing recalls for sold cars after discovering the driver's airbag can detach from the steering wheel if it goes off.

Ford recalls its new award-winning Puma SUV due to driver's airbag fault
18/02/2020 01:08 PM

We talk to writers, comedians, podcasters and performers Tessa Coates and Stevie Martin about how you can make your money work if you work in the creative industry.

Tessa Coates and Stevie Martin on the Making the Money Work podcast
18/02/2020 11:16 AM