Delusional Calculator

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Reviewed by: David Chen, CFA

This calculator has been verified for financial consistency and logical soundness regarding hypothetical projections.

Welcome to the **Delusional Calculator**! This tool allows you to explore the relationship between initial capital, required growth rate, time horizon, and a wildly optimistic final investment value. Use it to solve for any single missing variable based on your three other inputs.

Delusional Calculator

Enter at least three values and click ‘Calculate’.

Delusional Calculator Formula:

The core relationship defining the “Delusional Growth” is the Compound Annual Growth Formula, modified to fit our four variables:

F = I × (1 + G/100)T

Where:

  • F = Final Delusional Value
  • I = Initial Investment
  • G = Annual Growth Rate (in %)
  • T = Time Horizon (in years)

Formula Sources:

Source 1: Compound Annual Growth Rate – Investopedia Source 2: Compound Interest Calculation – The Balance

Variables Explained:

  • Initial Investment (I): The principal amount you start with. Must be greater than zero.
  • Annual Growth Rate (G): The average yearly percentage return required to hit your target. Often the most “delusional” input.
  • Time Horizon (T): The number of years or periods the investment compounds.
  • Final Delusional Value (F): Your ambitious target value at the end of the time horizon.

Related Calculators:

What is the Delusional Calculator?

The Delusional Calculator is a tongue-in-cheek financial tool designed to quickly reveal the necessary, and often unrealistic, inputs required to achieve extremely high financial goals. By manipulating inputs like the Initial Investment (I) or the Time Horizon (T), users can immediately see the annual percentage Growth Rate (G) required to hit a “delusional” Final Value (F).

While based on the fundamental principles of compounding, the calculator emphasizes the non-linear relationship between time, rate, and total growth. It serves as a stark reality check: hitting multi-million dollar targets in short periods requires either massive starting capital or astronomical, unsustainable growth rates. It’s a fun way to model ambitious targets and understand the mechanics of exponential growth.

How to Calculate Delusional Growth (Example):

Let’s find the required Annual Growth Rate (G) for an Initial Investment (I) of $5,000 to reach a Final Delusional Value (F) of $1,000,000 in a Time Horizon (T) of 10 years.

  1. Identify Variables: I = 5,000, F = 1,000,000, T = 10 years. We solve for G.
  2. Apply Formula: $G = 100 \times \left[\left(\frac{F}{I}\right)^{1/T} – 1\right]$
  3. Perform Calculation:
    • $F/I = 1,000,000 / 5,000 = 200$
    • $(200)^{1/10} \approx 1.6987$
    • $1.6987 – 1 = 0.6987$
    • $G = 100 \times 0.6987 = 69.87\%$
  4. Result: An Annual Growth Rate of 69.87% is required—a truly delusional rate!

Frequently Asked Questions (FAQ):

Is the Delusional Calculator actually accurate?

Yes, the math is based on the standard compound annual growth rate (CAGR) formula, which is mathematically sound for projecting exponential growth.

Why is the required growth rate so high?

The required growth rate (G) is high because the calculator models targets that are typically ambitious over a short period. Exponential growth takes time, and attempting to compress that growth into few years drastically increases the required rate.

What is the difference between I and F?

I (Initial Investment) is the starting capital. F (Final Delusional Value) is the target value after the Time Horizon (T) has passed and the Growth Rate (G) has been applied yearly.

Can I use this to calculate monthly compounding?

This calculator assumes annual compounding. For monthly compounding, you would need to adjust the Growth Rate (G) to a monthly rate and the Time Horizon (T) to the total number of months, but for simplicity, we focus on the annual perspective.

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