Future Value Calculator
Enter your assumptions for cash infusions, duration, and rate of return to find out the future value of a portfolio.
Investment Growth Table
| Year | Future Value | Total Investment | Investment Gain |
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What is Future Value?
Future Value (FV) represents the potential growth of an initial investment plus any additional contributions made over time, given a specific interest rate. It's a key concept in finance and investing, used to estimate how much an investment made today will grow in the future.
How Can a Future Value Calculator Help You?
A Future Value Calculator helps you understand the potential growth of your investments over time. By inputting details such as your initial investment, periodic contributions, investment duration, and expected return rate, you can estimate the future value of your investments. This aids in financial planning, setting investment goals, and making informed decisions about savings and investments.
How Does the Future Value Calculator Work?
The Future Value Calculator uses the Time Value of Money (TVM) concept to calculate the future value of your investments. It considers both the lumpsum starting investment and periodic contributions.
- Future Value of Starting Investment: FVstarting = P × (1 + r)t
- P is the present value (starting investment)
- r is the annual interest rate
- t is the investment duration in years
- Future Value of Periodic Investments: FVperiodic = PMT × {[(1 + r / n)nt - 1] / (r / n)} × (1 + r / n)
- PMT is the periodic investment amount
- r is the annual interest rate
- n is the number of compounding periods per year
- t is the investment duration in years
- Total Future Value: Sum of FVstarting and FVperiodic
- Return Gained: Total Future Value - Total Investment
Example: If you start with ₹1,00,000, invest ₹10,000 monthly for 20 years with an expected return of 12%, the calculator estimates a total future value of ₹0, with a return gain of ₹0.