Future value grows a present amount using a constant return per period.
Future Value Calculator
Form
Results
Future value
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Total interest
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Table of Contents
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What is Future Value?
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How to Use This Calculator
- Enter or select Present value, Number of periods, Interest rate.
- Check the unit beside each measurement. For a percentage or rate, use the scale and time period stated in the form.
- Choose Calculate, then compare the output with the formula and example below. If you change a value or option, calculate again to update the result.
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Formula Used
FV = PV × (1+r)ⁿ
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Variables Explained
| Input | What it means |
|---|---|
| Present value | The numeric input for the relationship being evaluated. |
| Number of periods | Count of equally spaced periods; each period must match the rate used in the formula. |
| Interest rate | The quoted rate for the time basis shown in the form; an annual rate is not a monthly rate. |
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Worked Example
1,000 growing at 5% for 3 periods becomes 1,157.63.
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Why Use This Calculator?
Compare the result with the underlying statement, budget or proposed transaction. It is most useful when every amount uses the same reporting period and the same accounting definition.
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Common Mistakes
- The rate must match the period length; future investment returns are assumptions.
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Frequently Asked Questions
Should I use monthly or annual figures?
Use one consistent period for every amount and rate in the relationship. If a form specifies an annual rate or a monthly amount, follow that label rather than mixing time periods.
Does the result include fees and tax?
Only the costs and taxes represented by the inputs and formula are included. A real transaction can include other charges, so compare the estimate with the underlying agreement or statement.
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Sources & References
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