Future Value of Lump Sum Calculator

Future Value Of Lump Sum:

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Background Information

What does Lump Sum mean?: It refers to maturity amount of a present value lump sum investment, or a one-time investment, after a specified number of years.

Formula

FV = PV (1 + rm) ^ mt

Where:-

r = R/100 (yearly interest rate)
t = number of years
m = the compounding intervals per period where a period is an interval of time.

Example

A person puts $10,000 into an investment account with 6.25% per year compounded monthly. The value of your investment in 2 years or, the future value of your account, according to the formula equals;

Investment (PV) = $10,000
Interest Rate (R) = 6.25%
Number of Periods (in years) (t) = 2
The compounding per Period (per year) or m = 12

FV = $10,000 (1 + 0.062512) ^ 12 × 2
= $11,327.81

Future Value of Lump Sum Calculator

Updated: Jun 10, 2018

Background Information