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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: lcerrito on December 18, 2016, 07:51:24 AM

Title: Calculator for Investments w/ Increasing Contributions?
Post by: lcerrito on December 18, 2016, 07:51:24 AM

So I've been using an online calculator for figuring out how long it will take to reach my investment goals based on contributions, return rates, etc. (http://www.bankrate.com/calculators/retirement/investment-goal-calculator.aspx)

The problem is that I am still early in my career and expect my pay to go up over the course of the next decade. Does anybody know of a calculator where I can plug in different contributions per year? Or increase contributions at a set percentage?

Alternatively, I tried doing it myself in Excel with the what I expect my contributions to be increased to (at 5 yr marks for simplicity), but the resulting figures seemed a little too generous. Any mathematicians able to point out where I went wrong in my Excel formula?

Title: Re: Calculator for Investments w/ Increasing Contributions?
Post by: MDM on December 18, 2016, 10:17:56 AM

You might look at the specific post linked here: FIRE in 8 years? (http://forum.mrmoneymustache.com/ask-a-mustachian/fire-in-8-years/msg620478/#msg620478) and links therein for a start.

Your question is a little different from the one posed there, but with some algebra.... 

If you start working with growth in taxable accounts, see the calculations near cell A126 in the case study spreadsheet (http://forum.mrmoneymustache.com/forum-information-faqs/case-study-spreadsheet-updates/).  Again, perhaps not exactly what you would need, but a start.

Good luck!