💰 Financial
Future Value Calculator
Calculate the future value of a single lump sum or a series of regular payments (an annuity) based on a specific growth rate.
⏳
Formula
FV = PV × (1 + r)^n + PMT × [((1+r)^n - 1) / r]FV- Future Value
PV- Present Value (initial lump sum)
PMT- Payment amount per period
r- Interest rate per period
n- Number of periods
Example
Future Value of an Annuity
Investing $5,000 today and adding $200 at the end of every year for 10 years at a 5% annual return.
- Calculate lump sum FV: $5,000 × (1 + 0.05)^10 = $8,144.47.
- Calculate annuity FV: $200 × [((1.05)^10 - 1) / 0.05] = $2,515.58.
- Total Future Value = $8,144.47 + $2,515.58 = $10,660.05.
Frequently Asked Questions
In an ordinary annuity, payments are made at the end of the period. In an annuity due, payments are made at the beginning of the period, which results in a slightly higher future value because each payment has more time to grow.