Present & Future Value Calculator
Calculate the present or future value of a lump sum using time value of money.
Assumptions used in this calculation
- Annual compounding: Uses a single compounding period per year; sub-annual (monthly or quarterly) compounding requires converting the rate and period count before entering them.
About this calculator
Money today isn't worth the same as the same amount of money years from now, since it could be earning interest in the meantime, which is why comparing a lump sum you have now against one you'll receive later requires more than just looking at the two numbers side by side. This calculator applies the core time-value-of-money formula, FV = PV × (1+r)ⁿ, to solve for either direction: given a present amount, a rate and a time period, it projects future value; given a future amount instead, it discounts backward to find present value. Working this out by hand means correctly raising (1+r) to the power of n and remembering which way to multiply or divide, a step that's easy to get backwards. This calculator is useful for evaluating whether a future payout is actually worth more or less than an offer today, planning how a lump sum will grow, or figuring out how much to invest now to hit a future target.
Worked example
₹10,000 at 8% for 5 years
Result: Future value ≈ ₹14,693
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