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 calculator 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 growth of the investment.
How to calculate the future value of an investment?
Time needed: 5 minutes.
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.