Reverse Return on Investment Calculator

Reverse Return on Investment Calculator calculator can be used to determine the initial investment required to achieve a specific target return over a defined period with a given interest rate.

Input Parameters

Calculation Results

Calculation Formula

Initial Investment = Target Amount / (1 + (Interest Rate / 100)^Years)

Where:
Target Amount: The amount you want to have in the future
Interest Rate: Annual interest rate percentage
Years: Number of years you plan to invest

Initial Investment Required

-

Reverse Return on Investment Calculator Calculator Usage Guide

Learn how to use the Reverse Return on Investment Calculator calculator and its working principles

How to Use the Calculator

  1. Enter the target amount (future value) you want to achieve.
  2. Input the number of years you plan to invest.
  3. Specify the annual interest rate (as a percentage).
  4. Click the "Calculate" button to determine the initial investment required.
  5. The result will show the initial amount you need to invest to reach your target amount.

Example

Suppose you want to have $10,000 in 5 years and the annual interest rate is 5%. The calculator will determine that you need to invest approximately $7,835.26 initially.

Formula Explanation

The calculator uses the formula for the present value of a future sum:

Initial Investment = Target Amount / (1 + (Interest Rate / 100)^Years)

This formula discounts the future value back to its present value based on the specified interest rate and time period.