Methodology

All calculators on My Finance Tools are built using standard financial formulas and best practices. Here’s a summary of the main methods used:

• Compound Interest: Uses the standard formula A = P(1 + r/n)nt where A is the future value, P is the principal, r is the annual rate, n is the compounding frequency, and t is years.
• Investment Return: Simulates growth with options for fees, inflation, taxes, withdrawals, and recurring contributions, using iterative calculations for each period.
• Mortgage: Calculates payments and amortization using the standard loan amortization formula.
• Wealth Multiplier: Shows the effect of compounding and inflation over time, using the same principles as above.

Sources and references:

• Investopedia
• Bankrate
• U.S. Securities and Exchange Commission (SEC)

If you have questions about the methodology, please contact us.