Future Value Factor Calculator
Compute the future value factor (1+r)^n from an interest rate and term. See instantly how much your principal grows, and get the future value automatically when you enter a principal.
Input
%
yrs
Compounding frequency
Once a year (annual)
$
Result
Future value factor at 3% over 20 years
1.806111×
Future value factor
1.806111
Present value factor (reciprocal)
0.553676
Future value (principal $1,000,000.00)
$1,806,111.23
How it works
- The future value factor is the multiplier showing how much a present principal grows when invested at a fixed compound rate; the formula is future value factor = (1+r)^n, where r is the annual rate and n is the number of years.
- This tool supports compounding frequency: with m compounding periods per year, the factor is (1+r/m)^(n×m). For annual compounding m=1, which matches (1+r)^n.
- When you enter a principal, the future value is calculated automatically as future value = principal × future value factor.
- The present value factor is the reciprocal of the future value factor, related by present value factor = 1/(1+r)^n. It is used to work back from a future target amount to the principal needed today.
- Raising the rate or extending the term makes the future value factor larger, so you can see how compounding accelerates growth in future value over time.
- Results are approximate and do not account for taxes, fees or rate changes. They do not guarantee actual returns on any financial product; make investment decisions at your own risk.
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Future Value Factor Calculator