- Enter the initial investment, regular contributions, annual interest rate, number of years, compounding frequency, and calculation type.
- Click "Calculate" to calculate the future value.
- View the detailed calculation and formula used below the result.
- Your calculation history will be displayed in the "Calculation History" section.
- Click "Clear" to reset the form and clear the calculation history.
- Click "Copy" to copy the future value to the clipboard.
The future value of a present sum calculator is a useful financial tool for determining the future worth of an amount invested today after accounting for interest accrued over time. It is based on the time value of money concept.
Concept
The calculator uses the formula:
Future Value = Present Value x (1 + r)^n
Where:
Present Value = Amount invested today
r = Interest rate per period
n = Number of compounding periods
This calculates how much a present principal amount can grow to in the future when compounded at a periodic rate of interest over a specified time.
Features
Key features of the calculator:
- Accepts present value or lump sum amount
- Allows setting interest rate and compounding frequency
- Compounds annually, quarterly, monthly etc.
- Flexible time horizons in years/months
- Generates detailed compound interest table
- Charts future value growth over time
- Adjustable deposit periods
- Option for regular deposits
Benefits
Benefits of using the calculator:
- Estimates return on investments over time
- Models growth of savings accounts and deposits
- Plans for large future goals like retirement
- Calculates maturity value of annuities
- Analyzes profitability of financial instruments
- Visualize impact of compound interest
- Easy tool for time value of money problems
Applications
Typical usage scenarios:
- Retirement planning and investment goals
- Saving for college education expenses
- Evaluating fixed deposits and bonds
- Comparing mutual funds and stocks
- Modeling savings growth
- Personal financial planning
Conclusion
The future value calculator provides an easy way to estimate the amount a present investment can grow to in the future by accounting for the impact of compound interest over time. It is a useful tool for both personal finance planning and making data-driven investing decisions.
References
- Bodie, Z., Kane, A., Marcus, A. J., & Mohanty, P. (2018). Investments. New York, NY: McGraw-Hill Education.
I’ve put so much effort writing this blog post to provide value to you. It’ll be very helpful for me, if you consider sharing it on social media or with your friends/family. SHARING IS ♥️
