Moneyzine
/Investment Guides /Short-Term Investment Calculator

Short-Term Investment Calculator

Moneyzine Editor
Author: 
Moneyzine Editor
2 mins
October 4th, 2023
Advertiser Disclosure

This short-term investment calculator allows you to figure out how much money you need to set aside today to purchase an asset or pay for an expense in the future. The calculator takes into consideration the following factors: anticipated price increases, years until purchase, the return on the short-term investment, and your marginal income tax rate.

Calculator Definitions

The variables used in our online calculator are defined in detail below, including how to interpret the results.

Current Cost of Asset ($)

This is the current selling price, or the market price, of the asset you want to buy in the future. This could be a boat, car, or even an expense such as an upcoming wedding or paying for college.

Projected Annual Price Increase (%)

This is the projected annual increase in the asset, or expense, stated as a percentage increase.

Years Until Purchase (Years)

This is the number of years until you make the purchase, or incur the expense.

Annual Return on Investment (%)

This calculator assumes that you want to set aside money today to make a purchase in the future. Until that money is used to make a purchase, it can be invested. This cell is the expected return on that investment.

Income Tax Rate (%)

Unless your short-term investment is free of federal income tax, any return on investment (such as interest) will be subject to federal and / or state income taxes. In this cell you would enter your marginal, or incremental, tax rate.

Estimated Future Cost of Asset ($)

The estimated future cost of the asset or expense is calculated by taking the current cost of the item and increasing it by the projected annual price increase(s).

Total Return on Investment (%)

The total return on investment is found by compounding the projected annual return on investment over the number of years until purchase.

After Tax Total ROI (%)

The after tax return on investment is the actual return you'll realize. This value takes the total return on investment, and lowers it by the marginal income tax rate entered earlier.

Short-Term Investment ($)

The short-term investment is how much money you'll need to set aside today in order to have enough money to make the desired purchase at a future point in time.


Short-Term Investment Calculator


Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.

Related Content

How to Make a Million Dollars in 10 Years
Truthfully, this title should actually be “How to Make a Million Dollars in 10 Years Without Going Into Debt", but that is just getting a little too winded for my liking. It’s true though!
March 26th, 2024
How to Apply Maslow’s Hierarchy to Your Money This Year
You might vaguely remember your psychology teacher talking about Maslow. He pointed at a picture of a triangle as you nodded off in the back of the school room.
March 27th, 2024
How to Tackle Multiple Savings Goals
When there’s only so much money to go around, there are often multiple savings goals competing for your money. Think of the young professional who’d like to get a more reliable car, buy a house, and save for retirement. Or consider the young family that’s saving for college, retirement, and a bigger house.
March 22nd, 2024
The Countdown to Early Retirement: 10 Expenses to Eliminate
Dreaming of waving goodbye to the daily grind five years ahead of schedule? The road to early retirement is paved with more than good intentions; it requires a meticulously crafted strategy with surprising twists. It's not solely about what you should be doing—like diligently saving a portion of your income or investing wisely—but also about what you need to stop doing.
March 22nd, 2024
Biden Or Trump: Who Is Better For The Economy And Stocks?
Yup. This is one of those articles. It's an election year, and here in the U.S., we get to decide which old dude who’s been alive long enough to remember when there were only 48 states in the U.S. will be the leader of the free world.
March 19th, 2024

Contributors

Moneyzine 2024. All Rights Reserved.