A Future Value Calculator is a powerful financial tool that helps people estimate how much their investment or savings will grow over a period of time. This tool falls under the financial planning calculator category and is widely used in personal finance, retirement planning, education savings, and long-term investment analysis.
By using this calculator, users can find out how much an initial amount of money will be worth in the future. It considers the interest rate, the time period, and whether the interest is compounded or applied simply. With just a few inputs, anyone can plan their financial future more accurately.
The calculator is useful for both individuals and financial professionals. It helps users set goals, compare investment options, and prepare for major expenses. Whether you are saving for a house, child’s education, or retirement, knowing the future value of your money is a key part of making smart financial decisions.
formula
Future Value with Compound Interest:
FV = PV * (1 + r/n)^(n*t)
Future Value with Simple Interest:
FV = PV * (1 + r*t)
Present Value:
PV = Initial_Investment
Annual Interest Rate:
r = Annual_Interest_Rate / 100
Number of Times Interest Applied per Year:
n = Compounding_Frequency
Time in Years:
t = Number_of_Years
Where:
- PV is the initial investment or present value.
- r is the annual interest rate (in decimal).
- n is how many times interest is added in one year (for example, monthly = 12).
- t is the total number of years the money is invested or saved.
General Reference Table
This table gives estimated future values for common investment amounts and interest rates over 5 years with yearly compounding. It helps users quickly see how money can grow.
| Initial Investment | Annual Interest Rate | Time (Years) | Future Value (Compound Interest) |
|---|---|---|---|
| ₹10,000 | 5% | 5 | ₹12,763 |
| ₹25,000 | 7% | 5 | ₹35,065 |
| ₹50,000 | 6% | 5 | ₹66,911 |
| ₹75,000 | 8% | 5 | ₹110,204 |
| ₹100,000 | 10% | 5 | ₹161,051 |
These are rounded values using compound interest with annual frequency. For more accurate results, use a Future Value Calculator with specific inputs.
Example
Suppose you invest ₹50,000 at an annual interest rate of 6% for 5 years, compounded once per year.
Step 1:
PV = ₹50,000
r = 6 / 100 = 0.06
n = 1 (compounded yearly)
t = 5
Step 2:
FV = PV * (1 + r/n)^(nt)
FV = ₹50,000 * (1 + 0.06/1)^(15)
FV = ₹50,000 * (1.06)^5
FV ≈ ₹50,000 * 1.3382 ≈ ₹66,911
So after 5 years, your investment will grow to around ₹66,911 with compound interest.
Most Common FAQs
Simple interest is calculated only on the original amount invested. Compound interest adds the interest back to the principal, so future interest is also earned on past interest. Over time, compound interest gives higher returns.
It depends on the account or investment. It can be compounded yearly, half-yearly, quarterly, monthly, or even daily. The more frequent the compounding, the higher the future value.
Yes. The calculator works for any currency. Just enter the investment amount in your currency, and the result will be in the same currency. Make sure to use consistent units.