Future Value Table
This page features essential tables for the Future Value Interest Factor (FVIF). These tables are a fundamental resource in finance and economics, specifically designed to help understand and calculate how a sum of money grows over time due to the effect of compound interest. Compound interest is interest earned on previously accumulated interest, leading to exponential growth of an investment or principal sum.
The FVIF is sometimes referred to as the compound factor. It quantifies the future value of investing exactly one unit of currency – such as $\textsf{₹}1$ or $1$ – today for a specified number of periods, assuming it earns interest at a constant rate per period. In simpler terms, the FVIF tells you what one unit of currency invested now will be worth at a specific future date, given a certain rate of return.
The primary application of FVIF tables is to calculate the Future Value (FV) of a *single* lump-sum amount invested at the present time. If you have a specific amount of money today and want to know how much it will grow to by a future date, assuming a consistent interest rate, these tables provide the necessary factor to perform that calculation efficiently. This is crucial for financial planning as it allows you to project the growth of your investments.
FVIF tables are typically organized in a grid format to make them easy to use. Rows usually represent the number of periods ('n') over which the money is invested or compounded, and columns represent various interest rates ('r') per period. To find the appropriate future value factor for your specific situation, you locate the intersection of the relevant number of periods and the applicable interest rate within the table.
Once you have identified the correct FVIF from the table, calculating the Future Value of your initial investment is straightforward: you multiply the initial principal amount by this factor. The underlying formula used to calculate the values found within these tables is: $$ \text{FVIF} = (1 + r)^n $$ Where '$r$' is the interest rate per period, and '$n$' is the number of periods over which the interest is compounded. The tables provide the pre-calculated results of the expression $(1 + r)^n$ for a range of common 'r' and 'n' values.
These tables significantly simplify compounding calculations, which can be tedious, especially for a large number of periods. They are considered fundamental tools in various aspects of financial planning and analysis, including:
- Projecting Investment Growth: Estimating the future worth of current investments.
- Determining Savings Goals: Calculating how much needs to be saved or invested today to reach a future target amount.
- Retirement Planning: Forecasting the potential growth of retirement savings over time.
- Understanding Compounding: Illustrating the powerful effect of earning interest on interest, especially over longer horizons.
By providing these readily available factors, this resource facilitates crucial calculations needed to understand the future potential of current funds and aids in planning for long-term financial objectives.
Future value of ₹ 1 i.e. $(1 + r)^n$ where r = interest rate; n = number of periods until payment or receipt.
| Periods | Interest Rates (r) | |||||||
|---|---|---|---|---|---|---|---|---|
| (n) | 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% |
| 1 | 1.01000 | 1.02000 | 1.03000 | 1.04000 | 1.05000 | 1.06000 | 1.07000 | 1.08000 |
| 2 | 1.02010 | 1.04040 | 1.06090 | 1.08160 | 1.10250 | 1.12360 | 1.14490 | 1.16640 |
| 3 | 1.03030 | 1.06121 | 1.09273 | 1.12486 | 1.15763 | 1.19102 | 1.22504 | 1.25971 |
| 4 | 1.04060 | 1.08243 | 1.12551 | 1.16986 | 1.21551 | 1.26248 | 1.31080 | 1.36049 |
| 5 | 1.05101 | 1.10408 | 1.15927 | 1.21665 | 1.27628 | 1.33823 | 1.40255 | 1.46933 |
| 6 | 1.06152 | 1.12616 | 1.19405 | 1.26532 | 1.34010 | 1.41852 | 1.50073 | 1.58687 |
| 7 | 1.07214 | 1.14869 | 1.22987 | 1.31593 | 1.40710 | 1.50363 | 1.60578 | 1.71382 |
| 8 | 1.08286 | 1.17166 | 1.26677 | 1.36857 | 1.47746 | 1.59385 | 1.71819 | 1.85093 |
| 9 | 1.09369 | 1.19509 | 1.30477 | 1.423311 | 1.55133 | 1.68948 | 1.83846 | 1.99900 |
| 10 | 1.10462 | 1.21899 | 1.34392 | 1.48024 | 1.62889 | 1.79085 | 1.96715 | 2.15892 |
| 11 | 1.11567 | 1.24337 | 1.38423 | 1.53945 | 1.71034 | 1.89830 | 2.10485 | 2.33164 |
| 12 | 1.12683 | 1.26824 | 1.42576 | 1.60103 | 1.79586 | 2.01220 | 2.25219 | 2.51817 |
| 13 | 1.13809 | 1.29361 | 1.46853 | 1.66507 | 1.88565 | 2.13293 | 2.40985 | 2.71962 |
| 14 | 1.14947 | 1.31948 | 1.51259 | 1.73168 | 1.97993 | 2.26090 | 2.57853 | 2.93719 |
| 15 | 1.16097 | 1.34587 | 1.55797 | 1.80094 | 2.07893 | 2.39656 | 2.75903 | 3.17217 |
| 16 | 1.17258 | 1.37279 | 1.60471 | 1.87298 | 2.18287 | 2.54035 | 2.95216 | 3.42594 |
| 17 | 1.18430 | 1.40024 | 1.65285 | 1.94790 | 2.29202 | 2.69277 | 3.15882 | 3.70002 |
| 18 | 1.19615 | 1.42825 | 1.70243 | 2.02582 | 2.40662 | 2.85434 | 3.37993 | 3.99602 |
| 19 | 1.20811 | 1.45681 | 1.75351 | 2.10685 | 2.52695 | 3.02560 | 3.61653 | 4.31570 |
| 20 | 1.22019 | 1.48595 | 1.80611 | 2.19112 | 2.65330 | 3.20714 | 3.86968 | 4.86968 |
| Periods | Interest Rates (r) | |||||||
|---|---|---|---|---|---|---|---|---|
| (n) | 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% |
| 21 | 1.23239 | 1.51567 | 1.86029 | 2.27877 | 2.78596 | 3.39956 | 4.14056 | 5.03383 |
| 22 | 1.24472 | 1.54598 | 1.91610 | 2.36992 | 2.92526 | 3.60354 | 4.43040 | 5.43654 |
| 23 | 1.25716 | 1.57690 | 1.97359 | 2.46472 | 3.07152 | 3.81975 | 4.74053 | 5.87146 |
| 24 | 1.26973 | 1.60844 | 2.032279 | 2.56330 | 3.22510 | 4.04893 | 5.07237 | 5.07237 |
| 25 | 1.28243 | 1.64061 | 2.09378 | 2.66584 | 3.38635 | 4.29187 | 5.42743 | 6.84848 |
| 26 | 1.29526 | 1.67342 | 2.15659 | 2.77247 | 3.55567 | 4.54938 | 5.80735 | 7.39635 |
| 27 | 1.30821 | 1.70689 | 2.22129 | 2.88337 | 3.73346 | 4.82235 | 6.21387 | 7.98806 |
| 28 | 1.32129 | 1.74102 | 2.28793 | 2.99870 | 3.92013 | 5.11169 | 6.64884 | 8.62711 |
| 29 | 1.33450 | 1.77584 | 2.35657 | 3.11865 | 4.11614 | 5.41839 | 7.11426 | 9.31727 |
| 30 | 1.34785 | 1.811136 | 2.42726 | 3.24340 | 4.32194 | 5.74349 | 7.61226 | 10.06266 |
| 31 | 1.36133 | 1.84759 | 2.50008 | 3.37313 | 4.53804 | 6.08810 | 8.14511 | 10.86767 |
| 32 | 1.37 | 1.88454 | 2.57508 | 3.50806 | 4.76494 | 6.45339 | 8.71527 | 11.73708 |
| 33 | 1.38869 | 1.92223 | 2.65234 | 3.64838 | 5.00319 | 6.84059 | 9.32534 | 12.67605 |
| 34 | 1.40258 | 1.96068 | 2.73191 | 3.79432 | 5.25335 | 7.25103 | 9.97811 | 13.69013 |
| 35 | 1.41660 | 1.99989 | 2.81386 | 3.94609 | 5.51602 | 7.68609 | 10.67658 | 14.72534 |
| 36 | 1.43077 | 2.03989 | 2.89828 | 4.10393 | 5.79182 | 8.14725 | 11.42394 | 15.96817 |
| 37 | 1.44508 | 2.08069 | 4.26809 | 4.26809 | 6.08141 | 8.63609 | 12.22362 | 17.24563 |
| 38 | 1.45953 | 2.12230 | 3.07478 | 4.43881 | 6.38548 | 9.15425 | 13.07927 | 18.62528 |
| 39 | 1.47412 | 2.16474 | 3.16703 | 4.61637 | 6.70475 | 9.70351 | 13.99482 | 20.11530 |
| 40 | 1.48886 | 2.20804 | 3.26204 | 4.80102 | 7.03999 | 10.28572 | 14.97446 | 21.72452 |