But what if you want to find the future value of an annuity? Suppose you invest Rs.10000 per month and want to know the final amount you get at the end of 10 years. The above formulae suit if you wish to calculate the future value for a lump sum investment. Here, at the end of tenure, you will get Rs.80525. Suppose you invested Rs.50000 for 5 years at a compound interest of 10% per annum interest is compounded annually. In this, PV is the initial value, r is the interest rate, t stands for the investment tenure, and n is the frequency of compounding per year. The future value formula, in this case, will be. In compound interest, interest is calculated each time on the previous closing balance, so it is also known as interest on interest. When the interest offered is compound interest: Then, at the end of tenure, you will receive Rs.75000. P stands for the present (initial) investment value, n represents the number of years, and r is the simple interest rate.įor example, assume that you invested Rs.50000 at a simple interest of 10% per annum for 5 years. Simple interest is when the annual interest is calculated on the fixed amount of principal each year during the tenure.

Calculating the future value can be done in two ways. The future value formula consists of the asset's (or investment's) present value, the interest rate, and the number of periods between the present and future dates in its most basic form. The online future value calculator will show you how much your investment will be worth in the given future time. The initial investment, periodic investment, interest rate, and period number are entered in the future value calculator's formula input box. A future value compound interest calculator is a helpful tool for calculating the value of any investment at a future date. It calculates how much your money will be worth in the future.

The future value calculator is a simulation that determines an investment's future value. The most practical method for this is to use a future value calculator. Thus, businesses and individuals must understand the future value of their assets. It assists investors in making sound financial decisions based on their financial objectives. Both investors and financial planners emphasize future value because it allows them to estimate how much an investment today will be worth in the future. To put it another way, the future value is the amount of money a given investment will be worth after a certain period, assuming a specific rate of return (interest rate). Future value is a value of an investment or asset on a specific date in the future.

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