# Net Future Value (NFV) Calculator

LAST UPDATE: September 25th, 2020

## Definition – 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.

## Formula – How NFV is calculated?

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

The future value formula is:

Future Value = Present Value x (1 + Rate of Return)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

## FAQ

### 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.