# Future Value Lump Sum Calculator

 Rate per Period**: % Number of Periods: Present Value: \$ Future Value: \$ 11,325.56

Calculates the future value of a present value lump sum investment, or a one time investment, based on a constant interest rate per period.

## Future Value Lump Sum Formula:

Where fv = future value, pv = present value, rate = rate per period, and nper = number of periods.

fv = -pv * (1 + rate)^nper

Note that either the present value or future value will be a negative value.

For the default example, a present value of -\$10,000.00 at a rate of 0.52% for 24 periods will yield a future value of \$11,325.56. If you are putting this \$10,000 into savings or an annuity then you are paying out the money in order to receive \$11,325.56 in the future. So the payout is negative cash flow to you and the final value is positive. From the perspective of the bank or financial institution the \$10,000.00 is positive and the \$11,325.56 is negative.

### **Notes on Future Value Calculations:

Rate per Period is the interest rate for each payment period. Number of Periods is the total number of payment periods. Make sure that you are consistent with the units (months, years or quarters) you use for specifying Rate per Period and Number of Periods.

Present Value is the lump-sum amount that a series of future payments is worth right now. For example, if you borrow \$10,000 the present value to you is \$10,000. If you are paying the money to a savings account then the present value is the value in the account, money you paid out.

How to Calculate APR: See notes for our future value calculator.

Example Future Value Calculations:

You put \$10,000 into savings earning 6.25% per year compounded monthly. You want to know the value of your investment in 2 years or, the future value of your savings account.

• Rate per period = 6.25% / 12 = 0.52%
• Number of Periods = 2 (years) * 12 (months/ year) = 24 (months)
• Present Value = -10,000 (money you pay to the account)
• At the end of 2 years your savings account will be worth \$11,325.56.

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