Future Value (FV) Calculator

Future Value Calculator is used for computing the future value of an asset. We can use this calculator when we want to analyse the impact of inflation on current savings. It uses the power of compounding to grow your savings.

Future Value = Current Value (1+r/100)^(t) where r is the interest rate and t is time duration. 

About Fintra's Future Value (FV) Calculator

An asset's value isn't constant, and it frequently changes over time for various factors like inflation and the returns earned on it. As inflation erodes the capital, the returns you earn from it adds value. Generally, the returns availed on the capitals are higher than inflation; hence, the asset grows over time. Fintra's Future Value (FV) Calculator will assist you to compute such growth. For these reasons, it is vital to understand the future value of the assets. Using Fintra's Future Value (FV) Calculator is the most feasible method of calculating future value because it is convenient and user-friendly.


How to use Fintra's Future Value (FV) Calculator to calculate future value? 

To obtain accurate results you need to provide the following data:

  1. Amount Invested– This refers to the amount deposited in the account
  2. Expected Annual Return
  3. Time Period

When all data has been filled in into the FV Calculator, click on “Submit”, and instantly results will be displayed.

For manually doing the calculations, you simply have to calculate simple interest. You won't require FV calculator for that. 

Future value = P + (P*r*t)

P = Initial value

R= Rate of interest

T= Number of years

The more complex way to calculate the value of the compounded asset involves using the following formula:

Future value = P * (1+r)t

P = Initial value

R = Rate of interest

T = The duration you desire to calculate future value (in years)


Limitations of the future value calculator

One of the limitations of future value calculator is that since the future is unpredictable, the calculator will assume the rates of return will remain constant over time. In the real world, we know this is not entirely true. Nevertheless, with such calculators, we at least get some ideas, and with their results, we can make plans in the present. 


FAQs about Future Value (FV)

Why it is essential to calculate future value?

It's essential to calculate the future value of your investments because it provides an idea of what will be your savings' worth a few years from now. The future value calculator online enables you to figure out if the value of the savings will be adequate or not to meet your needs in the near future. If it's inadequate, then you can promptly take corrective measures by saving or investing more in some higher-yielding assets.  

How to calculate the future value of monthly investments?

The future value of an investment depends on a few factors such as future return, inflation, and tax rates. An investment is considered worthwhile if the return offered exceeds future inflation. Use Fintra's Future Value Calculator to calculate the FV of an investment. 

How to calculate the future value of a series of deposits?

You can use a Future Value Calculator with the feature of compounding calculation. 

Browse more