Future Value (FV) is the value of money (either a lump sum or a stream of payments) at a time in the future.
Future value of a single sum
Future value of a series of payments
- “Present Value” is a sum of money in the present.
- “Rate of return” is a decimal value rate of return per period (the calculator above uses a percentage). A return of “2.2%” per year would be calculated as “0.022.”
- “Number of Periods” are the number of compounding periods.
We save $1,000 in an account that yields 2.2% interest compounded annually.
After 10 years, how much will we have saved?
Therefore, the future value of the account in 10 years would be $1,243.11.
Future Value of an Single Sum Chart
What is the difference between present value and future value?
Present value is the value of money in today’s dollars. Future value is the value of money at some point in the future.
What is the difference between future value and future value of an annuity (or annuity due)?
Future value can be a single sum or a stream of payments (annuity).
The future value of an annuity is the FV of a stream of payments occurring at the end of the period.
The future value of an annuity due is the FV of a stream of payments occurring at the beginning of the period.
What is the difference between future value and net future value?
Net future value (NFV) is a collection of future value calculations ending at the same time at one point in the future.
Future value (in the context of this calculator) is for only one sum of money at one point in the future.
- Wikipedia – Time Value of Money & Future Value – The concept of time value of money and future value. Includes formulas and example calculations.
- The Balance SMB – How to Calculate the Future Value of an Investment – Formulas to calculate future value both by hand and on a financial calculator.
- Investopedia – Time Value, Time Value of Money, & Future Value – An introduction to the concepts of future value as well as time value of money.
- Accounting Coach – Future Value of a Single Amount – Part of a larger series on future value, a formula and calculations on calculating future value.