Future Value Calculator
This future value calculator can be used to calculate the future value of and investment with given number of compounding periods (N), interest rate (I/Y), annuity payment per period (PMT), and starting investment.
Balance Accumulation Graph
|start principle||start balance||interest||end balance||end principle|
The future value calculator allows you to determine the Future Value in financing. Future value is simply what cash flow will be worth after compound interest – your money after financing. We all know that money on deposit in a bank, or perhaps on hold in a bond purchase, earns compound interest and so has a different value in the future.
A good example for this kind of calculation is a savings account. The future value of a savings account tells you how much will be in the account at a given point in the future, including compound interest. Put in $10 at 6 percent per year. Leave it in for a year you now have $10.60 Leave it in for another year and you have $11.24. Now try it with the calculator, and you will see the $11.24 value appear as the future value.
These calculations have a vast number of uses in finance. One of the most interesting ones is to calculate the future value of a mortgage, and then to forecast the value of the property it finances for the same time period. While the future value of the mortgage is certain, the speculative forecast of the property value could suggest an important disparity between equity in the home and the value of the property. There are many such examples of how this kind of calculation is important in finance and business.