# Net Future Value (NFV) Calculator

LAST UPDATE: October 5th, 2019

### What is Net Future Value (NFV)?

Net Future Value (NFV) is the value in the future of a series of financial streams.

At its core, it combines a number of different future value calculations added together.

### Net Future Value Formula – How NFV is calculated?

Each year is a separate future value calculation that are added together.

The future value formula is: $\text{Future Value} = \text{Present Value} \times (1 + \text{Rate of Return})^\text{Number of Periods}$

Where:

• 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. In the case of Net Future Value, it is the number of years until the future value year.

## Example

Assuming a 2.2% rate of return, what is the net future value of $1,000 1 year before the date,$2,000 2 years before the date, and $5,000 3 years before the date? • FV of$1,000 over 1 year = $1,022.00 • FV of$2,000 over 2 years = $2,088.97 • FV of$5,000 over 3 years = $5,337.31 Total of all FV sums =$8448.28

### What is the difference between future value and net future value?

Future value is the value in the future of a single amount (or of an annuity).

Net future value is the sum of multiple future value calculations.

### What is the difference between net future value and net present value?

Net present value (NPV) calculates the value of a sum of money in today’s dollars.

Net future value (NFV) calculates the value of a sum of money at some point in the future.