DEFINITION of 'Future Value  FV'
The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today. There are two ways to calculate FV:
1) For an asset with simple annual interest: = Original Investment x (1+(interest rate*number of years))
2) For an asset with interest compounded annually: = Original Investment x ((1+interest rate)^number of years)
INVESTOPEDIA EXPLAINS 'Future Value  FV'
Consider the following examples:
1) $1000 invested for 5 years with simple annual interest of 10% would have a future value of $1,500.00.
2) $1000 invested for 5 years at 10%, compounded annually has a future value of $1,610.51.
VIDEO
Loading the player...
RELATED TERMS

Commuted Value
The present value of the future series of cash flows required ... 
Present Value Of An Annuity
The current value of a set of cash flows in the future, given ... 
Future Value Of An Annuity
The value of a group of payments at a specified date in the future. ... 
Present Value Interest Factor Of ...
A factor which can be used to calculate the present value of ... 
Benefit Cost Ratio  BCR
A ratio attempting to identify the relationship between the cost ... 
Compound
The ability of an asset to generate earnings, which are then ...
RELATED FAQS

How do you calculate present value in Excel?
Present value is the current value of an expected future stream of cash flow. The concept is simple. For example, assume ... Read Full Answer >> 
Why is the time value of money (TVM) an important concept to investors?
The time value of money (TVM) is an important concept to investors because a dollar on hand today is worth more than a dollar ... Read Full Answer >> 
How do I place an order to buy or sell shares?
It is easy to get started buying and selling stocks, especially with the advancements in online trading since the turn of ... Read Full Answer >> 
Is there a difference between financial spread betting and arbitrage?
Financial spread betting is a type of speculation that involves a highly leveraged derivative product, whereas arbitrage ... Read Full Answer >> 
What is the utility function and how is it calculated?
In economics, utility function is an important concept that measures preferences over a set of goods and services. Utility ... Read Full Answer >> 
What does a high turnover ratio signify for an investment fund?
If an investment fund has a high turnover ratio, it indicates it replaces most or all of its holdings over a oneyear period. ... Read Full Answer >>
Related Articles

Fundamental Analysis
Calculating Future Value
Future value is the value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today. 
Investing Basics
Calculating The Present And Future Value Of Annuities
At some point in your life, you may have had to make a series of fixed payments over a period of time  such as rent or car payments  or have received a series of payments over a period of time, ... 
Investing Basics
Understanding The Time Value Of Money
Find out why time really is money by learning to calculate present and future value. 
Professionals
Microsoft Excel Features For The Financially Literate
Here are some of Excel's functions and features that a financial professional can use to make his or her job more efficient. 
Forex Education
Time Value Of Money: Determining Your Future Worth
Determining monthly contributions to college funds, retirement plans or savings is easy with this calculation. 
Active Trading Fundamentals
Bet Smarter With The Monte Carlo Simulation
This technique can reduce uncertainty in estimating future outcomes. 
Active Trading
Buy High, Sell Much Higher
Value investing may seem foolproof, but it carries more risk than you might know. 
Mutual Funds & ETFs
ETF Analysis: Energy Select Sector SPDR
Find out more about the Energy Select Sector SPDR Fund, the top holdings of this exchangetraded fund and the characteristics of the fund. 
Investing
The Number One Reason Why Most Traders Fail
We show you the simple tools, availble to everyone, to succeed as an active trader: education, experience, charts, vision, and risk management systems. 
Investing News
The Financial Singularity Will Destroy Your Return
Given the current and future growth of financial technology, many believe algorithms will soon define what drives market outcomes. With a wealth of big data, algorithms would be able to create ...