OPEN-SOURCE SCRIPT
Future Value: Compound Interest with Regular Deposits [racer8]
Updated
This isn't no ordinary FV equation, this one takes into account regular deposits. I had to derive this equation myself.
This calculator calculates future value based on the following inputs:
- Present value
- Yearly return
- Yearly deposit
- years
Application: Can be used to determine you're future value of your equity curve.
C = c*m^n + a*m*{(m^(n-1)-1)/(m-1)}
C = Future value
c = present value
m = yearly return multiplier
n = years
a = yearly deposit amount
Enjoy :)
This calculator calculates future value based on the following inputs:
- Present value
- Yearly return
- Yearly deposit
- years
Application: Can be used to determine you're future value of your equity curve.
C = c*m^n + a*m*{(m^(n-1)-1)/(m-1)}
C = Future value
c = present value
m = yearly return multiplier
n = years
a = yearly deposit amount
Enjoy :)
Release Notes
...More info:This tool is for educational purposes. The sole purpose of this tool is to show the effects regular deposits can have on one's own equity curve over time. I have learned quite a bit myself from this indicator about the effects after testing this indicator and plotting the equity curves with & without regular deposits on desmos.com (an advanced online graphing calculator).
I can conclude what I have learned in the following:
- yearly regular deposits don't have a major impact on the equity curve. (I'm not sure about monthly or bi-weekly deposits.)
- It is probably most optimal to inject regular deposits for the first few years when trading, then stop depositing after that.
Release Notes
.Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.