What does future value calculate?

The future value (FV) calculates the worth of an investment at a specific date in the future based on the initial amount invested, the annual interest rate, the number of compound periods per year, and the total number of years the money is invested.

In simpler terms, future value helps you estimate how much your money can grow over time. It shows you the projected value of your investment at a future date so you can plan your finances accordingly. Future value can be easily calculated with a Future Value Calculator.

A Future Value Calculator is a financial tool that estimates the value of an investment at a future date based on the time value of money principle. It uses the compound interest formula:

FV=PV×(1+r)^n

For example, if you invest ₹1,00,000 today at an annual interest rate of 12% for 5 years compounded annually, the future value after 5 years will be ₹1,76,234.

Users can input different values for present value, interest rate, and time to forecast investment growth. This helps investors make informed decisions about savings and investments by clearly indicating potential future gains.