What is Future Value?

Future value is the utility of cash or an asset at a specific date in the future. It shows you the amount to which a current asset would grow throughout some time. The future value is a crucial idea as it shows you the value of your present savings in the future. You find out about how much an investment today is worth in the future.

The future value is imperative to the two investors and financial planners, as they might appraise how much an investment today is worth in the future. It assists investors with settling on solid financial choices dependent on their financial goals.

Understanding the idea of future value assists you with earning a return above inflation. Inflation is the move in the prices of goods and services throughout some time. Your investment should beat inflation over the long haul assuming you need to achieve crucial financial goals, like purchasing a vehicle or accumulating a corpus for youngsters' advanced education and marriage.

Future value is critical for a business. In the event that you invest money in another task, it is crucial for know the return on investment. Future value assists you with working out the potential return from the task.

What is the Future Value Calculator?

The future value calculator is a simulation that calculates the future value of an investment. It shows you what your money is worth in the future. A future value calculator is a smart tool that computes the value of any investment at a specific time in the future.

The future value calculator consists of a formula box, where you enter the initial investment, periodic investment, rate of interest, and the number of periods. The calculator will display the future value of your investment.

How to calculate future value formula

The future value formula is FV=PV(1+i)n, where the present value PV increments for every period into the future by a factor of 1 + I.

The future value calculator uses multiple variables in the FV calculation:

The present value total

Number of time periods, typically years

Interest rate

Compounding frequency

Cash flow payments

Growing annuities and perpetuities

The future value of a sum of money is the value of the current sum at a future date.

You can use this future value calculator to determine how much your investment will be worth at some point in the future due to accumulated interest and potential cash flows.

You can enter 0 for any variable you'd like to exclude when using this calculator. Our other future value calculators provide options for more specific future value calculations.