Future Value Calculator

Our Future Value Calculator is very easy to use for everyone. And gives immediate response to Future Value calculations.

Initial value ($):

Number of periods (Years):

Interest rate (%):

Future value after years: $

Present value (PV): $

Interest accrued: $

Effective interest rate: %

Total cash flow: $

Capital growth: %

Share This Calculator

Related Calculator

A Guide to Future Value and the Future Value Calculator

Knowing the meaning of future value in the continuously changing world of personal finance is like having a vision of the future for your investments. One important statistic that can assist you in planning and making well-informed financial decisions for the future is the future value of an investment. To help you make wise financial decisions, we’ll go over the importance of future value, explain how to use a future value calculator, examine the basic formula, give an example of a calculation in the real world, and provide some financial advice.

Future Value Calculation Formula

Here we talk about future value. To calculate the future value, it is important to understand its calculation formula well. While the future value calculator streamlines the process, having a basic understanding of the formula can deepen your financial literacy. The future value formula is:

$� � = � � \times (1 + �)^{� �}$

$� �$ is the future value of the investment.
$� �$ is the present value or initial investment.
$�$ is the annual interest rate (as a decimal).
$�$ is the number of times that interest is compounded per unit $�$ (time in years).

Calculating Future Value

To show how the future value formula is applied, let's go over an actual-life situation. Suppose you invest $ 5,000 at an annual interest rate of 6%, compounded quarterly for 8 years. When we enter these values into the calculation for future value, we get:

$� � = 5000 \times (1 + \frac{0.06}{4})^{4 \times 8}$

After calculating this equation, the future value of your investment is approximately $ 8,064.78. This explains how you may get a sense of how your investment can increase in value over time by using the future value calculation.