About Future Value Calculator & FAQs
What is Future Value (FV)?
Future Value (FV) is the value of a current asset or sum of money at a specified date in the future, based on an assumed rate of growth (interest rate). It helps understand the potential growth of investments over time.
Why is calculating Future Value important for financial planning?
Calculating FV is crucial for financial planning as it helps you estimate how much your current savings and regular investments could grow, set realistic financial goals (like retirement or buying a home), and understand the impact of different interest rates and investment periods on your wealth.
How does this Future Value Calculator work?
This calculator takes your initial investment (lumpsum), any regular investments (monthly or annually), the expected annual interest rate, and the total investment period. It then projects the total future value and provides a year-by-year breakdown of your investments, interest earned, and the closing balance.
What's the difference between this calculator and a dedicated SIP or Lumpsum calculator?
This Future Value calculator is more versatile. It can handle scenarios with only an initial lumpsum, only regular investments (like a SIP), or a combination of both. It also allows for regular investments to be made annually, not just monthly.