Future Value of ₹ 1 per Period Payment
Welcome to this page, which provides comprehensive tables for the Future Value Interest Factor of an Ordinary Annuity (FVIFA). This financial tool is indispensable for anyone planning for future financial goals involving a series of regular, equal contributions. Building on the concept of the time value of money and the power of compound interest, the FVIFA helps project the accumulated value of systematic savings or investments.
An annuity, in financial terms, refers to a series of payments or receipts of a fixed amount occurring at regular intervals. An ordinary annuity is specifically one where these equal payments are made or received at the *end* of each period (e.g., end of month, end of year). The FVIFA represents the total future value of receiving or investing exactly one unit of currency – such as $\textsf{₹}1$ or $1$ – at the end of each period for a specific number of periods, assuming each payment is invested at a given interest rate and allowed to grow through compounding.
The FVIFA essentially aggregates the future value of each individual payment in the annuity, factoring in the interest it earns from the moment it's invested until the end of the entire period. These tables are designed to greatly simplify the calculation of the total accumulated amount from a stream of identical future cash flows that are invested and compounded over time. Without these tables, you would have to calculate the future value of each individual payment and then sum them up, which can be time-consuming for annuities spanning many periods.
The tables are structured for easy lookup, typically organized with rows representing the number of periods ('n') over which the annuity payments are made, and columns representing different interest rates ('r') per period at which the payments are assumed to be invested. To determine the future value of your annuity, you first locate the appropriate FVIFA factor in the table by finding the intersection of the relevant number of periods and the applicable interest rate.
Once the correct FVIFA factor is found, calculating the total Future Value of the annuity stream is straightforward: you multiply this factor by the actual amount of the periodic payment. The factor itself is the result of a summation, representing the sum of the future values of each $\textsf{₹}1$ (or $1) payment. The underlying formula for the FVIFA is: $$ \text{FVIFA}(r, n) = \sum_{t=1}^{n} (1+r)^{n-t} $$ Where 'r' is the interest rate per period, 'n' is the total number of periods, and 't' is the period number of a specific payment (from 1 to n). The tables provide the pre-calculated results of this series summation for common values of 'r' and 'n'.
FVIFA tables are a crucial tool in various financial planning scenarios because they allow for the efficient calculation of accumulated wealth from regular contributions. Key applications include:
- Retirement Planning: Estimating the size of a retirement nest egg accumulated through regular savings contributions.
- Education Fund Planning: Calculating the potential value of a college fund built via consistent periodic investments.
- Sinking Fund Calculations: Determining the amount accumulated in a fund set up to meet a future obligation by making regular payments.
- Systematic Investment Plans (SIPs): Projecting the future value of regular investments made in mutual funds or other instruments.
- Evaluating the outcome of any consistent savings or investment plan over time.
By providing these readily available factors, this resource empowers users to quickly and accurately project the future growth of their regular savings or investment streams, aiding in setting goals and making informed financial decisions.
Future value of ₹ 1 i.e. $\frac{|(1 + r)^n − 1|}{r}$ 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 | 1.00000 | 1.00000 | 1.00000 | 1.00000 | 1.00000 | 1.00000 | 1.00000 | 1.00000 |
| 2 | 2.01000 | 2.02000 | 2.03000 | 0.04000 | 2.05000 | 0.06000 | 2.07000 | 2.08000 |
| 3 | 3.03010 | 3.06040 | 3.09090 | 3.12160 | 3.15250 | 3.18360 | 3.21490 | 3.24640 |
| 4 | 4.06040 | 4.12161 | 4.18363 | 4.24646 | 4.31013 | 4.37462 | 4.43994 | 4.50611 |
| 5 | 5.10101 | 5.20404 | 5.30914 | 5.41632 | 5.52563 | 5.63709 | 5.75074 | 5.86660 |
| 6 | 6.15202 | 6.30812 | 6.46841 | 6.63298 | 6.80191 | 6.97532 | 7.15329 | 7.33593 |
| 7 | 7.21354 | 7.43428 | 7.66246 | 7.89829 | 8.14201 | 8.39384 | 8.65402 | 8.92280 |
| 8 | 8.28567 | 8.58297 | 8.89234 | 9.21423 | 9.54911 | 9.89747 | 10.25980 | 10.63663 |
| 9 | 9.36853 | 9.75463 | 10.15911 | 10.58280 | 11.49132 | 11.49132 | 11.97799 | 12.48756 |
| 10 | 10.46221 | 10.94972 | 11.46388 | 1.00611 | 13.18079 | 19.18079 | 13.81645 | 14.48656 |
| 11 | 11.56683 | 12.16872 | 12.80780 | 13.48635 | 14.20679 | 14.97164 | 15.78360 | 16.64549 |
| 12 | 12.68250 | 13.41209 | 14.19203 | 15.02581 | 15.91719 | 16.86994 | 17.88845 | 18.97713 |
| 13 | 13.80933 | 14.68033 | 15.61779 | 16.62684 | 17.71298 | 18.88214 | 20.14064 | 21.49530 |
| 14 | 14.94742 | 15.97394 | 17.08632 | 18.29191 | 19.59863 | 21.01507 | 22.55049 | 24.21492 |
| 15 | 16.09690 | 17.29342 | 18.59891 | 20.02359 | 21.57856 | 23.27597 | 25.12902 | 27.15211 |
| 16 | 17.25786 | 18.63929 | 20.15688 | 21.82453 | 23.65749 | 25.67253 | 27.88805 | 30.32428 |
| 17 | 18.43044 | 20.01207 | 21.76159 | 23.69751 | 25.84037 | 28.21288 | 30.84022 | 33.75023 |
| 18 | 19.61475 | 21.41231 | 23.41444 | 25.64541 | 28.13238 | 30.90656 | 33.99903 | 37.45024 |
| 19 | 20.81090 | 22.84056 | 25.11687 | 27.67123 | 30.53900 | 33.75999 | 37.37896 | 41.44626 |
| 20 | 22.01900 | 24.29737 | 26.87037 | 29.77808 | 33.06595 | 36.78559 | 40.99549 | 45.76196 |
| Periods | Interest Rates (r) | |||||||
|---|---|---|---|---|---|---|---|---|
| (n) | 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% |
| 21 | 23.23919 | 25.78332 | 28.67649 | 31.96920 | 35.71925 | 39.99273 | 44.86518 | 50.42292 |
| 22 | 24.47159 | 27.29898 | 30.53678 | 34.24977 | 38.50521 | 43.39229 | 49.00574 | 55.45676 |
| 23 | 25.71630 | 28.84496 | 32.45288 | 36.61789 | 41.43048 | 46.99583 | 5.43614 | 60.89330 |
| 24 | 26.97346 | 30.42186 | 34.42647 | 39.08260 | 44.50200 | 50.81558 | 58.17667 | 66.76476 |
| 25 | 28.24230 | 32.03030 | 36.45926 | 41.64591 | 47.72710 | 54.86451 | 63.24904 | 73.10594 |
| 26 | 29.52563 | 33.61091 | 38.55304 | 44.31174 | 51.11345 | 59.15368 | 68.64647 | 79.95442 |
| 27 | 30.82089 | 35.34432 | 40.70963 | 47.08421 | 54.66913 | 63.70577 | 74.48482 | 87.35077 |
| 28 | 32.12910 | 37.05121 | 42.93092 | 49.96758 | 58.40258 | 68.52811 | 80.69796 | 95.33883 |
| 29 | 33.45039 | 38.79223 | 45.21885 | 52.96625 | 62.32271 | 73.69980 | 87.34653 | 103.96594 |
| 30 | 30.78489 | 40.56808 | 47.57542 | 56.08494 | 66.43885 | 79.05819 | 94.46079 | 113.28211 |
| 31 | 36.13274 | 42.37944 | 50.00268 | 59.32864 | 70.76079 | 84.80168 | 102.07304 | 123.34587 |
| 32 | 37.49407 | 44.22703 | 50.50276 | 62.70147 | 75.29883 | 90.88978 | 110.21815 | 134.21354 |
| 33 | 38.86901 | 46.11157 | 55.07784 | 66.20953 | 80.06377 | 97.34316 | 118.93343 | 145.95062 |
| 34 | 40.25770 | 48.03380 | 57.73018 | 69.85791 | 85.6696 | 104.18375 | 128.25876 | 158.62667 |
| 35 | 41.66028 | 49.99448 | 60.46208 | 73.65222 | 90.32031 | 111.43478 | 138.43478 | 172.31680 |
| 36 | 43.07688 | 51.99437 | 63.27594 | 77.59831 | 95.83632 | 119.12087 | 148.91346 | 187.10215 |
| 37 | 44.50765 | 54.03425 | 66.17422 | 81.70225 | 101.62814 | 127.26812 | 160.33740 | 203.07032 |
| 38 | 45.95272 | 56.11945 | 85.97034 | 107.70955 | 135.90421 | 172.56102 | 172.56102 | 220.31595 |
| 39 | 47.41225 | 58.23724 | 72.23423 | 90.40915 | 114.09505 | 145.05846 | 185.64029 | 238.94122 |
| 40 | 48.88637 | 60.40198 | 75.40126 | 95.02552 | 120.7997 | 154.76197 | 199.63511 | 259.05652 |