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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
$

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.