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.
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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?
- Determine the present value
Calculate or determine how much initial investment or value an asset is worth.
- Determine the rate of return
This will be the annual rate of return in percent.
- Enter the information into the formula above
Using the total years, enter the information into the formula or calculator.
Future value is the total value of an investment after a certain amount of time undergoing compound interest.
Invest in securities with higher rates of return.