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#Stock profit calculator etf how to

Of this figure, $28,621 is your financial gain.

If you invest an initial lump of $5,000 into an S&P 500 index over 20 years – and it continues to return an average of 10% per year – our stock market calculator gives us a final balance of $33,621.

Of this figure, $17,228 is your financial gain.

If you invest an initial lump of $5,000 into a FTSE 100 index over 20 years – and it continues to return an average of 7.75% per year – our stock market calculator gives us a final balance of $22,228.

To keep things consistent, we’ll use the average annualized returns of both the FTSE 100 and S&P 500.

#Stock profit calculator etf how to

So now that you know how to use our stock market calculator, we are now going to give you a couple of real-world examples. In both cases, you are investing in a highly diversified portfolio of shares – which is ideal for a long-term financial plan. The S&P 500, on the other hand, represents 500 large-cap companies listed on the US stock markets. For those unaware, the FTSE 100 represents the 100 largest companies listed on the London Stock Exchange. You can easily invest in either of the above index funds via an ETF on the eToro app – commission-free. Since the S&P 500 was launched in 1926 – it has returned average annualized gains of just over 10%.As of Q2 2020 – the FTSE 100 has returned average annualized gains of 7.75% since its inception.With that being said, the most reliable way to obtain this figure is to assess the average annualized return of your chosen stock market since it was incepted. As noted above, this is because there is no way to be 100% sure what your stock investments will return in your stated period. This is the most difficult variable of our stock market calculator. This will allow you to ride out the ups and downs of the financial markets. As a rule of thumb, you should aim to keep your shares for at least five years. In other words, you won’t be looking to touch any of your shares throughout this period. This is the number of years that you plan to keep your stock investment. Although the total return figure will be displayed in dollars, the figure will be the same for GBP (or whichever currency you opt for). For example, if you plan to invest £1,000 GBP – just enter 1,000 into the box. Note: Although our stock market calculator is denominated in US dollars – you can use it with any currency. For example, if you are planning to invest $5,000 – enter this into the respective box. This is simply the amount that you are planning to invest as a lump sum. Nevertheless, here’s how to use our stock market calculator. On the contrary, there is no knowing how your stock market investments will perform in the coming years. That is to say, one variable in particular – the rate of return, cannot be predicted with any certainty. First and foremost, it is important to note that our stock market calculator should be used with caution.