Future Value Calculator
Calculate the future value of your investment or savings with our free calculator. See how much your money will grow over time with compound interest.
Category: Financial
Future Value Calculator
Frequently Asked Questions
What is future value?
Future value is the value of an asset or cash at a specific date in the future based on an assumed growth rate. It helps you understand how much your current investments or savings will be worth after a certain period given a specific interest rate.
How is future value calculated?
The basic future value formula is FV = PV × (1 + r)^t, where FV is future value, PV is present value (initial investment), r is the interest rate per period (as a decimal), and t is the number of time periods. This formula assumes compound interest, which means interest earned also earns interest in subsequent periods.
Why is calculating future value important?
Calculating future value is important for financial planning because it helps you set realistic financial goals, understand the growth potential of your investments, compare different investment options, plan for major expenses like education or retirement, and make informed decisions about saving and investing.