Future Value Calculator

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Note: Future Value calculator uses JavaScript, therefore you must have it enabled to use this calculator.

Future Value formula is:

 Future Value formula

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Definitions and terms used in Future Value Calculator

Present Value
The amount expected to be invested or paid in the beginning or principal amount.
Interest Rate Per Period
The rate at which the interest for the use of money is charged or paid. Usually, the interest rate is expressed as a percentage and noted on annual basis.
Number of Time Periods
The number of time the interest is compounded (year, month, quarter etc.) and must have the same time frame as ‘Interest Rate Per Period’.
Compound interest
The interest that increases exponentially over time periods. The interest earning interest.

Future Value Examples

Example 1:

You invest 1,000 for 8 years. How much your investment will be worth at 7.25% annual interest rate compounded annually?

Present Value (PV) = 1,000

Interest Rate Per Period = 7.25%

Number of Time Periods = 8

AnswerFuture Value = 1,750.57

If you invest 1,000 today, at a rate of 7.25 % per year compounded annually, you will receive 1,750.57 after 8 years.

 

Example 2:

You invest 1,000 for 8 years. How much your investment will be worth at 7.24% annual interest rate compounded quarterly?

Present Value (PV) = 1,000

Interest Rate Per Period = 7.24% / 4 = 1.81%

Number of Time Periods = 8 * 4 = 32

AnswerFuture Value = 1,775.39

If you invest 1,000 today, at a rate of 7.24 % per year compounded quarterly, you will receive 1,775.39 after 8 years.

 

Example 3:

You invest 1,000 for 8 years. How much your investment will be worth at 7.2% annual interest rate compounded monthly?

Present Value (PV) = 1,000

Interest Rate Per Period = 7.2% / 12 = 0.6%

Number of Time Periods = 8 * 12 = 96

AnswerFuture Value = 1,775.85

If you invest 1,000 today, at a rate of 7.2 % per year compounded monthly, you will receive 1,775.85 after 8 years.

 

These examples show the effect of compounding interest. At certain point, a lower annual interest rate compounded more often can generate higher return than a higher interest rate compounded less frequent.