How to Calculate Required Interest Rate
The required interest rate formula is r = n × [(FV/PV)^(1/(n×t)) - 1], where FV is your target amount, PV is your starting amount, n is the compounding frequency, and t is the time period in years. This calculator solves this equation instantly.
Setting Realistic Return Expectations
Historical average returns: savings accounts 1-4%, bonds 3-5%, balanced portfolios 5-7%, stock market 7-10%. If your required rate exceeds 10%, you may need to increase your starting amount, extend your timeline, or adjust your target.