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How to Build an Investment Calculator?
16/04/2018
4 min read

How to Build an Investment Calculator?

Table of Contents

Here an investment calculator. Before you continue reading we’d like you to use the calculator once.

Done? Now, we all can agree on one thing. We all want to retire with deep pockets, or if I put this more bluntly, financial independence is the light we seek at the end of the tunnel. These buzzwords that we keep hearing – retirement savings, personal finance, return calculator, investment strategy aren’t just buzzwords, after all. And the road to financial independence is paved with blocks of investment.

Those who talk the most about investment do it the least. Now, for your users who have taken the plunge into the investment waters in a bid to swim towards financial independence, you should do your bit and help them understand the different elements that are needed to hit the magical figure with a calculator. It can show your customers how their initial investment, the frequency of contributions and risk tolerance can all affect how their money grows. We’ll walk you through how you can create one on Outgrow.

Outgrow allows you to build a wide range of investment calculators, risk calculators, savings calculators and much more with complex formulas and logical statements. Here we’ll go through the steps involved in creating an investment calculator.

Investment Calculator – The Magic Formula

Equation 1

S&P 500 dividend yield + about 4.5% = the expected long-term return on stocks

Equation 2

A 1.5% expense ratio = more than 40% of your money after 40 years

Equation 3

Net income / shareholder equity = return on equity

Note: You can find more details about the calculations here.

Now that we know the formula, let’s understand how you can create an investment calculator using Outgrow.

Step by Step Process to Build an Investment Calculator:

For starters, you’ll need the following inputs from the users

Q1 – Starting balance

Q2 – Annual Contribution

Q3 – Current Age

Q4 – Age of Retirement

Q5 – Expected Rate of Return

Q6 – Marginal Tax Rate

1. As with any interactive experience, you need to start off by adding the questions. You can do this by logging into the Outgrow app and accessing the builder. In the builder, you can add questions on the left panel by using the text editor on the right panel.

2. Once you’re done with the questions, it’s time to define the input methods for each question in the calculator. You can choose between text inputs, drop-down, multi-select, single select, opinion scale, rating, and numeric slider.

Note: If you are using a numerical slider, do not forget to mention the upper and lower limits along with the step-length.

3. Now, it’s time to add the formula to the mix to accomplish the goal of creating this calculator.

The formulae used are as follows:

R1 – (Q1*((1+R2)^R3))+((Q2/R2)(((1+R2)^R3)-1)(1+R2))

R2 – Q5/100

R3 – Q4-Q3

R4 – Q2*R3

Here R1 is – At retirement your IRA balance could be worth and R4 is total contributions. R3 and R4 are used just for calculation purpose and their values can also be used directly within the formula.

You can copy and paste this to the formula builder. See it in action in the screenshot below.

Note: You can also use JSON to import formulae into the builder

Investment Calculator – The Magic Lead Magnet

Of course, we are talking about lead generation. By now you know where to position the lead gen form (hint: it is before the results). Carrying forward from where we left off previously makes your results page rich in value with charts, images, or videos. These additions augment the overall experience and make it well rounded.

Moving on, you can avail the option of getting an email notification once a user provides his/her contact information. This also works the other way round; you can send an email to your user directing them to more resources once you acquire their contact info.

Now that you have acquired the leads, what next?

With native and non-native integrations send your leads further down the funnel through pre-established workflows on Zapier, MailChimp et al. For apps without a native integration use web-hooks. All these can be accessed here Configure > Integrations.

Well, it’s a wrap from our side. You can create a bunch of other cool finance calculators on Outgrow. Just head over to our templates page and find a variety of calculators ranging from retirement savings calculators, personal finance calculators, credit card payment calculators to VC funding!

You can also explore our promotion checklist to learn about different ways to promote your calculator.

Additional Resource: 9 Best Practices to Promote Your Calculator

Do you need help creating a complex calculator of your own? Hit us up with the red chat button on the bottom right. Or start by taking our course on how to boost lead generation using calculators.