What does it do?
This future value of a lump sum calculator works out what a lump sum of money received today will be worth in the future, taking into account a discount rate.
Specifically, the FV of a lump sum calculator, calculates the value (FV) at the end of period n, of a lump sum (PV) received at the beginning of period 1, using a discount rate i.
Future Value of Lump Sum Formula
As can be seen the worksheet uses the future value of a lump sum formula as shown below:
FV = PV x (1 + i)n
Additionally full details of the formula are available at our future value of a lump sum formula page.
Instructions
The Excel FV of a lump sum calculator is available for download below. The calculator computes the FV by entering details relating to the PV, discount rate and the number of periods.
Instructions for using the calculator are as follows.
Step 1
Firstly enter the present value (PV). The present value of the lump sum is entered. This is the amount received at the beginning of period 1.
Step 2
Next enter the discount rate (i). The discount rate is the rate used to compound the lump sum forward from the beginning of period 1 (today) to end of period n. The rate should be for a period. For example, if the period is a year, then the rate should be the yearly rate.
Step 3
Finally enter the number of periods (n). The number of periods is entered. A period can be any term (month, year etc). The period must be consistent with the discount rate provided (see step 2)
Step 4
As can be seen the future value of a lump sum template works out the future value (FV). It is important to realize that the answer is the value at the end of period n, of a lump sum of money received today (beginning of period 1), at a discount rate of i.
Future Value of a Lump Sum Calculator Download
The FV of a lump sum calculator spreadsheet is available for download in Excel format by following the link below.
The future value calculator is one type of tvm calculator calculators used in time value of money calculations. Additional calculators are available at the links below.
Users use this future value of a lump sum calculator at their own risk. We make no warranty or representation as to its accuracy. We are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of a future value of lump sum calculator that you might use when considering how to calculate the future value of a lump sum future amount. It is purely illustrative of a future value calculator. This is not intended to reflect general standards or targets for any particular business, company or sector. If you do spot a mistake in this future value lump sum calculator, please let us know and we will try to fix it.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.