• Future value (FV) is the value of the current asset at some point in the future based on the expected growth rate.

  • Investors can reasonably assume a return on investment using the FV calculation.
  • Determining the FV of a market investment can be challenging due to market volatility and uncertainty about future investment conditions.
  • There are two ways to calculate the FV of an asset: FV using simple interest and FV using compound interest.
  • Future value versus present value (PV); the first calculates how much something will be worth in the future, and the other calculates how much something in the future is worth today.