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| Future Value Formula: Future Value = PV * (1 + Interest Rate)^Number of Periods | |||
Future Value Definition The Future Value Calculator is a financial calculator that will calculate the future value of any lump sump if you simply enter in the present value, interest rate per period, and number of periods. What future value really means essentially is how much a certain amount of money now will be worth in the future assuming a certain interest rate (rate of return). The underlying principle behind all future value calculations is that the value of money changes over time (or more accurately the purchasing power of money changes over time) because of inflation (money becomes less valuable over time) and interest/rate of return (money increases over time as it accumulates interest/investment returns. Also, check out the Present Value Calculator. How to Calculate Future Value Let's be honest - sometimes the best future value calculator is the one that is easy to use and doesn't require us to even know what the future value formula is in the first place! But if you want to know the exact formula for calculating future value then please check out the "Formula" box above. |