Future Value Calculator

Become a wise investor by using our user-friendly future value calculator. Simply process the necessary variables to rapidly calculate an investment’s future worth without having to perform any computations.

$
%
$
illustration

Lorem ipsum dolor sit amet consectetur adipisicing elit.

Result

Future Value: $

PV (Present Value)
Total Periodic Deposits
Total Interest

Starting Amount:

PeriodIc Deposit:

Interest:

Starting Amount:

Accumulated Deposit:

Accumulated interest

Schedule

No Start Balance Deposit Interest End Balance

The Concept of Future Value Along With Its Main Formula

Future value is a key concept in finance that measures the worth of money across time. This concept uses compound interest or growth to compute the predicted value of an investment at a later period. Typically, it is calculated using the formula below:

FV=PV (1+r)n, where:

‘FV’ is an abbreviation for the ‘Future Value’ concept and ‘PV’ symbolizes the ‘original investment balance’ or ‘present value.’ The letters ‘r’ and ‘n’ stand for ‘annually expressed interest rate’ and ‘number of years money is invested for,’ respectively. Hint: Some people use the letter ‘i’ to express the ‘interest rate per year’

Hint: Some people use the letter ‘i’ to express the ‘interest rate per year’

Two Different Types of Future Value Calculations

Since future value is a key concept in finance, experts mainly use two types of FV computations in order to deal with diverse use cases. Below is a succinct description of each FV computation type:

Future Value of an Annuity

FV of an annuity intends to determine the worth of a sequence of recurring payments conducted at regular periods. This type considers both the initial principle (amount) and the interest received over time. Contributions to retirement accounts (like 401(k)) is a prime example of this FV calculation type.

Future Value of a Lump Sum

The future value of a lump sum aims to evaluate the long-term worth of a single deposit or investment amount. In order to do that successfully, this FV kind considers compounded interest. It is most suitable for predicting returns on assets, like bonds or CDs.

Sample Showcasing the Computation of Future Value Through Its Formula

Let’s consider an example of Ross who made an initial investment of $1000 at an annual interest rate of 5%. Determine the final worth of Ross’ investment in 10 years.

Future Value of an Annuity

Initial investment (also known as Present Value (PV)) = $1000

Applied interest rate = 5% per year

By converting interest rate (r) in decimal form, we’ll get ‘0.05’

Number of periods (n): 10 years

By substituting values in the formula of Future Value, we’ll get

FV=1000 (1+0.05)10

FV=1000 (1.05)10

FV=1000 (1.62889462677744140625)

FV=1628.89

Hence, Ross’ investment of $1000 will grow to $1628.89 in 10 years

How to Calculate Future Value Using Our FV Calculator?

Our FV calculator offers an easy approach to calculate the eventual value of an investment. This tool’s algorithms have been trained using industry-standard formulae to calculate future value swiftly and correctly. Here’s how easy it is to get started with this future value of money calculator:

bullet

Enter the initial investment or present value.

bullet

Define the number of compounding periods.

bullet

Specify the percentage of interest rate per compounding period.

bullet

Add the periodic deposit amount.

bullet

Pick an appropriate time (either beginning or end) of periodic deposit.

bullet

Tap the ‘Calculate’ button and process your data for computation.

Key Advanced Features of Our Future Value Calculator

In addition to the free-of-cost availability, accessibility on any internet-connected device, and 24/7 approachability, our future value calculator boasts multiple advanced features. Here is a description of those features:

arrow

Flexible Nature

Comprehensive Results

Graphical Representations

This FV calculator is completely based on users’ inputs and the generic formula for future value. Hence, the tool enables users to obtain personalized outcomes by entering customized inputs.

This online utility is a detailed future value calculator. The tool helps customers acquire insights into their FVs by displaying present value, total deposits, and total interest in a straightforward and understandable style.

This online tool uses interactive graphics to show the growth of investments in addition to calculations. Therefore, the tool makes it easy to demonstrate original investment, interest accrual, and recurring deposits.

Some Frequently Asked Questions (FAQs)

Future value is increased by more frequent compounding because of the extra interest earned on interest.

Absolutely! Our future value calculator can help users understand the impact of time, interest rates, and regular contributions on investment growth. Therefore, it can serve as an excellent educational tool.

The timing (beginning or end of each period) of periodic deposits has great significance because it impacts the overall future value by altering the compounding effect on subsequent deposits.

Yes! Our developers have made this future value calculator compatible with mobile and desktop systems. Therefore, with a few taps, you can compute the worth of your investment on your smartphone.