Enter the present value, interest rate, time period, and compounding frequency into the future value calculator to determine the future value of an asset or security.

Future Value Formula

The following formula is used to calculate the future value of an asset.

V = PV * (1 + r) ^ n

  • Where V is the future value
  • PV is the present value
  • r is the rate of return
  • n is the number of periods

This formula can be used to calculate the future value of anything that sees a consistent return rate.

Future Value Definition

A future value is defined as the future monetary value of an investment due to the growth of the investment.

How to calculate the future value of an investment?

How to calculate future value?

  1. Determine the present value

    Calculate or determine how much initial investment or value an asset is worth.

  2. Determine the rate of return

    This will be the annual rate of return in percent.

  3. Enter the information into the formula above

    Using the total years, enter the information into the formula or calculator.

FAQ

What is future value?

Future value is the total value of an investment after a certain amount of time undergoing compound interest.

How to i increase the future value?

Invest in securities with higher rates of return.

future value calculator
future value formula