Metric Notes

Formula

r_real = (1 + r) / (1 + i) - 1

r_p = (1 + r_real)^(1/m) - 1

FV = P*(1+r_p)^(m*T) + C*((1+r_p)^(m*T)-1)/r_p

Description

Nominal return (r) is adjusted by inflation (i), converted to interval return (r_p), then compounded over m intervals per year for T years with fixed contribution C each interval.

Financial End Goal

Given all other inputs stay the same, to reach the financial goal:

Required periodic contribution

Required annual return

Required time horizon