# Future Value of a Present Sum Calculator

Instructions:
• 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.
Calculation History

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
• 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

1. Bodie, Z., Kane, A., Marcus, A. J., & Mohanty, P. (2018). Investments. New York, NY: McGraw-Hill Education.

Last Updated : 23 February, 2024

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