How to Choose the Right Interest Rate for Your Projections

When using a financial calculator like PersonalROI, the interest rate you choose is the most sensitive variable.

Historical Averages

The S&P 500 has historically returned around 10% annually before inflation. However, past performance is not indicative of future results.

Conservative vs. Aggressive

It's generally wise to use a conservative estimate (e.g., 5-7%) for long-term planning to ensure you don't fall short of your goals. If you are investing in safer assets like bonds, your expected rate should be lower (3-5%).