By calculating the future value of $100 over the next twenty years, you can see how much your principal will grow based on compound interest.
So if you want to save $100 for 20 years, you want to know how much that investment will be worth at the end of the period.
To do this, we can use the future value formula below:
$$FV = PV \times (1 + r)^{n}$$
We already have two of the three variables needed to calculate this:
- Present Value (FV): This is the initial $100 to invest
- n: This is the number of periods, namely 20 years
The last variable we need to do this calculation is r, which is the return on investment. Some investments may have interest rates given in advance, while others may be contingent on performance (at which point you may want to look at a range of future values to assess whether the investment is a good option).
In the table below, we have calculated the future value (FV) of $100 over 20 years for expected returns of 2% to 30%.
The table below shows the present value (PV) of $100 over 20 years for interest rates from 2% to 30%.
As you will see, the future value of $100 in twenty years can range from $148.59 to $19,004.96.
| Rabat | Current value | Future value |
|---|---|---|
| 2% | $ 100 | $ 148,59 |
| 3% | $ 100 | $ 180,61 |
| 4% | $ 100 | $ 219,11 |
| 5% | $ 100 | $ 265,33 |
| 6% | $ 100 | $320,71 |
| 7% | $ 100 | $ 386,97 |
| 8% | $ 100 | $ 466,10 |
| 9% | $ 100 | 560,44 USD |
| 10% | $ 100 | $672,75 |
| 11% | $ 100 | $ 806,23 |
| 12% | $ 100 | $ 964,63 |
| 13% | $ 100 | $ 1.152,31 |
| 14% | $ 100 | $ 1.374,35 |
| 15% | $ 100 | $ 1.636,65 |
| 16% | $ 100 | $ 1.946,08 |
| 17% | $ 100 | $ 2.310,56 |
| 18% | $ 100 | $ 2.739,30 |
| 19% | $ 100 | $ 3.242,94 |
| 20% | $ 100 | $3.833,76 |
| 21% | $ 100 | $ 4.525,93 |
| 22% | $ 100 | $ 5.335,76 |
| 23% | $ 100 | $ 6.282,06 |
| 24% | $ 100 | $ 7.386,41 |
| 25% | $ 100 | $ 8.673,62 |
| 26% | $ 100 | $ 10.172,11 |
| 27% | $ 100 | $ 11.914,46 |
| 28% | $ 100 | $ 13.937,97 |
| 29% | $ 100 | $ 16.285,24 |
| 30% | $ 100 | $ 19.004,96 |
This is the most commonly used FV formula, which calculates the compound interest on the new balance at the end of the period. Some investments will add interest at the start of the new period, while others may have continuous compounding, which again would require a slightly different formula.
Hopefully this article has helped you understand how to do your own future value calculations. You can also use our fastfuture value calculatorfor specific numbers.
