For a brief, educational introduction to finance and the time value of money, please visit our Finance Calculator. To learn more about or do calculations on present value instead, feel free to pop on over to our Present Value Calculator. There can be no such things as mortgages, auto loans, or credit cards without FV. The Time Value of MoneyįV (along with PV, I/Y, N, and PMT) is an important element in the time value of money, which forms the backbone of finance. This means that $10 in a savings account today will be worth $10.60 one year later. Pressing calculate will result in an FV of $10.60. A present value table helps us with present value computations.
It is possible to use the calculator to learn this concept. In this case, interest is said to be compounded monthly. Typically, cash in a savings account or a hold in a bond purchase earns compound interest and so has a different value in the future.Ī good example of this kind of calculation is a savings account because the future value of it tells how much will be in the account at a given point in the future. Related Investment Calculator | Present Value Calculatorįuture value, or FV, is what money is expected to be worth in the future.
