# Future Value, Investment, CAGR, Rule Of 72 And Other finance Calculators

Investment Calculator – Future Value, Investment, CAGR, Rule Of 72 And Other finance Calculators

# Future value calculator

A future value calculator is a critical business tool. You’ll need to know how to calculate future value when you want to know the value of an asset (such as an investment) at a specific date in the future. Usually, you’ll calculate future value when you want to know how much an investment will pay off. The future value formula includes the asset’s present value, the interest rate per a specific time period, and the number of time periods between now and the future date.

## The formula for future value

If you want to know how to calculate future value on your own, the formula is the same for any asset: `future_value = present_value * (1 + interest_rate / compound_frequency)^(compound_frequency * years)`

. If you don’t know all the values in this equation, feel free to use our present value calculator to assess your investment’s value at the present moment, and our compound annual growth rate (CAGR) calculator to be sure you plug in the correct interest rate. Usually, the time period will be one year as interest rates are often calculated annually.

# Rule of 72 calculator

Rule of 72 calculator tells you how much time it takes for something to double given a certain level of constant growth rate. The term “doubling time” can be used interchangeably – our tool could as well be called “doubling time calculator”, because that’s exactly what it does. There’s a nifty hack that lets you easily do it manually, see below to find out what is rule of 72. This is a special kind of compound interest where you want to work out how long it will take for something (for example your investment) to increase by 100%. It’s a fairly narrow case, but it comes up quite often.

## What is the rule of 72?

The rule states that in order to get the *estimated* doubling time, simply divide `72`

by a percentage growth in a single period. For example, if something grows by `5%`

per minute, then it will double in roughly `72 / 5 = 14.4 minutes`

. The actual number is closer to 14.2067 – this should give you an idea of how much off you may be when you use the rule of a thumb method.

# Investment Calculator – CAGR calculator

CAGR calculator is a useful tool for anyone who wants to estimate the gain from an investment. The application bases its calculations on the Compound Annual Growth Rate formula (CAGR formula). If you know how to calculate growth rate, you can determine the profit of your investment over a particular period of time.

The article will also explain the following:

- What is the CAGR formula?
- What is the growth rate formula?
- How to calculate growth rate.
- How to use CAGR calculator to determine either CAGR, end value or the start value of an investment.

## What is the simple growth rate formula?

The growth rate formula is used to determine the percentage increase of a value within a particular period of time. In other words, how much an investment is going to yield. In order to calculate it you need the following formula:

`PR = (V present - V past) / V past x 100`

Where:

- PR – percent rate
- V present – present value
- V past – past value

## What is the CAGR formula?

Now, it’s high time to collate the growth rate formula with the CAGR formula:

`CAGR = (final value / initial value)`

^{1 / number of periods} - 1

# Investment Calculator

Investment calculator is a simple tool which helps you estimate how much profit an investment will yield in the future, taking into account a fixed interest rate and duration of your investment. You can calculate both final balance of your investment and total interest. It also lets you determine these quantities while including a monthly contribution to your initial investment.

## Why use the investment calculator

Asking yourself whether to make an investment or which product to choose? Planning a trip of a lifetime and wondering if your are going to gather the necessary sum? Are you on track with your financial goals? In all of these situations our investment calculator might come in handy. All you need to know is: how much you want to invest, what is the interest rate and how long are you willing to wait for return on your investment.

## How to estimate the future value of your investment

- Determine how much are you willing to invest initially.
- Decide whether you want to contribute a specified amount of money to the initial sum.
- Find out what the interest rate on your investment is.
- Determine the duration of your investment.
- Do a series of multiplications taking into account the growth of the sum being the base of the interest rate.
- Find out what your final balance is.

# Investment Calculator – Savings calculator

Savings calculator, otherwise called “savings account calculator” is a versatile tool that can help you plan how to save up enough money to buy your dream car, trip, etc. It works in both directions – go ahead to either find out how much you’ll save OR how much you need to deposit if you have a certain amount as your goal. It operates on a few variables: initial balance, meaning how much can you put in as an initial deposit; monthly deposit, interest rate and term, meaning how long will you be saving for, be it months or years. Moreover, should you be saving for years, there is a table underneath the savings calculator that will show you what your balance will look like at the end of each year. It’s a special kind of a compound interest calculation, with a little twist – monthly deposits.

# Investment Calculator – Compound Interest Calculator

Compound Interest Calculator is a tool which helps you estimate how much money you will save with your deposit or how much your loan will grow within a particular period of time. In order to make a smart financial decision you need to be able to foresee the final results of it. That’s why it’s worth knowing how to calculate compound interest. The most common real-life application of the compound interest formula is a regular savings calculation.

Read on to find out:

- what compound interest is
- what compound interest formula you can use
- how to calculate compound interest

## What compound interest is

First of all, you should get to know what compound interest is and how it differs from simple interest. Only then will it be possible to compare these two options. Compound interest is the interest calculated on the initial principal and the interest which has been accumulated during the consecutive periods as well. This concept of adding carrying charge makes a deposit or loan grow at a faster rate. Simple interest is opposite to compound interest, calculated only on the initial sum of money.

# Investment Calculator – Present value calculator

Present value calculator is a tool that helps you estimate current value of a future payment or a stream of cash flows given a certain rate of return. Present value, also called *present discounted value*, is one of the most important financial concepts and is used to price among other things mortgages, loans, bonds, stocks and more, just as future value calculations. It’s related to the fact that money we receive today can be invested to earn a return. It is also useful when estimating how much you need to invest now in order to meet a certain future goal, for example buying a car or a home. So, if you’re wondering how much your future earnings are worth today keep reading to find out how to calculate present value. You could also be interested in future value calculator. Keep reading to find out how to work out present value and what’s the equation for it.

## Present value formula

To calculate the present value of future incomes you should use this equation:

`PV=FV/(1+r)`

Where:

- PV = present value
- FV = future value
- r = interest rate

Thanks to this formula you can estimate the present value of an income to be received in one year. If you want to calculate the present value for more than one period of time, you need to raise the `(1+r)`

by the number of periods. Then the equation will look like this:

`PV=FV/(1+r)^n`

Where: n = number of periods.

This is the most commonly used present valuation model where compound interest is applied, which means that interest increases exponentially over subsequent periods.

## Investment Calculator – Compound interest formula

The compound interest equation lets you estimate how much you will earn with your savings account. It’s quite complex because it takes under consideration not only the annual interest rate and the number of years but also the number of times the interest is compounded per year.

The formula for annual compound interest is as follows:

`V = P (1+ r/n)^nt`

Where:

- V – the future value of the investment
- P – the initial principal
- r – the annual interest rate (in decimal)
- n – the number of times the interest is compounded a year
- t – the numbers of years the money is invested for

**Inflation Calculator**