How to Use
- Enter the periodic payment amount (PMT), e.g., monthly deposit.
- Enter the annual interest rate (%), e.g., expected annual return.
- Enter the total number of periods, i.e., the total number of payments you plan to make.
- Click 'Calculate Future Value' to see the total value, principal, and interest earned at the end of the term.
Tips
- This calculator assumes an 'Ordinary Annuity' (payments at the end of each period).
- The interest rate should match the payment period. This simple tool assumes annual compounding.
- Compound interest is key to long-term growth; the longer the period, the greater the interest portion.
- All calculations are performed locally in your browser. Your financial data is never uploaded.
About Future Value (FV) Calculator
How It Works
Future Value (FV) represents the value of a current asset at a future date based on an assumed rate of growth. This calculator specifically computes the Future Value of an Ordinary Annuity, which assumes equal payments made at the end of each period.
Formula
The formula for the Future Value of an Ordinary Annuity is:
FV = PMT × [((1 + r)^n - 1) / r]
Key Terms
- Periodic Payment (PMT)
- The amount invested at each period.
- Periodic Interest Rate (r)
- The annual interest rate divided by the number of periods per year (assumed to be 1 in this simple version).
- Number of Periods (n)
- The total number of payments.
- Future Value
- The total value of the investment at the end of the term, including principal and interest.
