The Investment Portfolio Calculator is an intricate way to model, extrapolate, and calculate one's investment portfolio.
Given the other possibilities for online calculators - free or costly - Investment Portfolio Calculator attempts to bring the most
functionality and reliable calculations to users free of charge. This is an effort to allow investors, both new and veteran, a chance to see how one's
portfolio might perform over time as they tweak the values to their current or desired situation.
Below are some of the primary features of the calculator.
Features
Stock Look-up!
Unlike many calculators which simply calculate analysis based on a single equity's value or provide a generalized assessment, this calculator allows one to look-up specific stocks.
This stock look-up functionality gathers data on the equity and assesses the average price and dividends distributed based on the most recent data available.
It is this data which is extrapolated and used for analysis. This can give one a better idea of potential portfolio growth using current real data.
User-Defined Increases in Dividend and Equity!
- The dividend percentage increase is granted annually at the beginning of each new year (except the first). This is to simulate dividend raises that are often associated with dividend-giving companies.
- The equity percentage increase is divided between each month. This is used to simulate an equity's growth throughout a year. It is important to understand that equities do not always go up in value each month but they generally trend upward over time.
Monthly Contributions!
Each month, a monthly contribution can be added to the portfolio and divvied between each of the specified equities in their respective percentages.
2 Methods of Dividend Redistribution!
While monthly contributions are distributed among the portfolio equities based on the allocation percentage preference, dividends can be reinvested in one of two ways:
- (M1 Finance Style) which gathers all monthly dividends from all equities for the month and then redistributes the dividends in a way to most likely preserve the desired percentage of allocations among equities in the portfolio.
- (DRIP Style) which simply reinvests the dividends from the equities back into the same equities from which the dividends were given. This will likely erode the desired-percentage integrity but can be a good model for traditional accounts which do not function like M1-Finance.
Realistic Dividend Distribution!
Dividends are distributed only in the months in which they are given in the real world. This gives a more reliable calculation of portfolio growth.
Cautions!
While this calculator attempts to model the possibilities of future growth using real data there are some cautions to consider:
- Not investment advice: This calculator should not be used as a tool for investment advice or in calculation of risk, value, or potential gains/losses. This is a tool for entertainment and possible educational purposes only.
- Not indicative of future growth: This calculator cannot predict the future and previous or current results are not indicative of what the future may hold.
- Taxes not accounted for: Tax rates are not considered in the modeling of this analysis. It is important to consider tax implications especially when projecting valuation into the future.
- Incomplete API: The API used is a great resource for positions' data however it is not a perfect source. Some of the data is incomplete (I.E. dividend data dispersements) but can be used as a generalized assessment for most stocks.