Financial Calculator Fv N Pmt I

This financial calculator helps you determine the future value (FV) of a series of periodic payments (PMT) with a fixed interest rate (i) over a specific number of periods (n). It's useful for planning savings, investments, loans, and other financial scenarios.

What is a Future Value Calculator?

The Future Value (FV) calculator determines the future worth of a series of periodic payments, considering compounding interest. It's commonly used in financial planning, investment analysis, and loan calculations.

Key terms in this calculation:

FV - Future Value: The amount of money accumulated after n periods
PMT - Payment: The amount of money paid at each period
n - Number of periods: The total number of payment periods
i - Interest rate per period: The rate at which the money grows each period

This calculator assumes regular payments at the end of each period and a constant interest rate. For irregular payments or changing rates, more complex financial modeling may be needed.

How to Use This Calculator

Enter the periodic payment amount (PMT) in the first field
Specify the number of periods (n) the payments will continue
Input the interest rate per period (i) as a decimal (e.g., 0.05 for 5%)
Click "Calculate" to see the future value
Review the result and chart visualization
Use the "Reset" button to clear all fields

The calculator will display the future value in your local currency format and show a growth chart over time.

Formula Explained

The future value of a series of periodic payments is calculated using the following formula:

FV = PMT × [(1 + i)ⁿ - 1] / i

Where:

FV = Future Value
PMT = Periodic payment
i = Interest rate per period
n = Number of periods

This formula accounts for compounding interest, where each payment earns interest not only on itself but also on all previous payments.

Worked Example

Let's calculate the future value of monthly payments of $100 over 5 years with an annual interest rate of 6%.

Convert the annual rate to monthly: 6% ÷ 12 = 0.5% or 0.005 in decimal
Number of months: 5 × 12 = 60
Plug into the formula: FV = 100 × [(1 + 0.005)⁶⁰ - 1] / 0.005
Calculate (1.005)⁶⁰ ≈ 1.34885
FV ≈ 100 × (1.34885 - 1) / 0.005 ≈ $2,697.70

The future value of these payments will be approximately $2,697.70 after 5 years.

Future Value Calculation Breakdown
Period	Payment	Interest Earned	Total at End of Period
1	$100.00	$0.50	$100.50
2	$100.00	$100.50 × 0.005 = $0.50	$201.50
3	$100.00	$201.50 × 0.005 ≈ $1.01	$302.51
...	...	...	...
60	$100.00	...	$2,697.70

Frequently Asked Questions

What is the difference between FV and PV?: Future Value (FV) is the value of money at a future date, while Present Value (PV) is the current worth of future cash flows.
How does compounding affect the result?: Compounding means interest is earned on both the initial payment and all accumulated interest from previous periods, leading to exponential growth.
Can I use this for loans?: Yes, this calculator can help determine how much you'll owe on a loan with periodic payments and interest.
What if I make irregular payments?: For irregular payments, you would need to calculate each payment separately and sum the future values.
Is the interest rate per period or annual?: The calculator expects the interest rate per period (i). For annual rates, divide by the number of periods in a year.