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The future value calculator helps you calculate the value of current money in the future. Confused? Well, let us talk about how this happens.
The value of money does not remain the same but keeps changing provided you keep it in an account that gives you interest on the amount. For example, consider a savings bank account that offers 5.5% interest per annum. Now you have INR 1000 in that account. You have not transacted or taken out that amount for a year.
After a year, the value of 1000 becomes 1000 plus the 5.5 percent of the interest which is INR 1055. Now, this 1055 is the future value of 1000 that was a year ago. The future value of money is the sum of the current value and interest.
By now you must have understood that the value of money increases in the future. But what does this imply? Economists call this phenomenon as ‘Time value of Money”. It means a given amount of money will have more value at present than in the future. This is attributed to the earning potential of the money over a period.
Did you observe one thing here? The money is earning more money and not you. Cool, isn’t it?How does the knowledge of the future value of money help you?
Who does not want to earn money without putting any effort? Future value helps precisely in achieving this efficiently. You can analyze where and how to invest your money and see how it grows after the specified time. This is where our future value calculator helps you.
The future value of money is calculated by the formula:
If you are looking at how to grow your money over time, you should know some essential skills and techniques:
When talking about saving money, we think of cutting down expenses and act too strict with our lifestyle. Well, though it helps a bit, in fact, the key that you should focus on is how to earn more. Consider suitable options such as part-time jobs, starting your side business or use your talent and skills to earn a side income. Our salary calculator will guide you more on this. It is not just your salary that makes you rich, it is your spending habits too.
Binge eating and shopping, ordering food instead of cooking at home, unnecessary expenditure on makeup, clothes, and lifestyle to show off will add unnecessary financial woes to you. Remember, most millionaires believe that spending on high profile branded items is just a matter of show off and hence refrain from them. Be simple, think high. Track where your money is being drained for no purpose.
Our future value calculator helps you to calculate the value of the money after a certain time in years and months. Just enter the amount, the interest that is being offered by the scheme or the fund or investment scheme, and select the tenure in years and months. Click Calculate. You can see the future value of your money.
You can get this useful future value calculator as a widget. It will be a great addition if you have a blog or website where you share about finance, investments, and money with your readers. Let us know the style that you would want it to be and we would design it for free. Mail us at [email protected]
We also have a fantastic range of other finance calculators too. Do check them out. Happy Investing!