Future value

Future value is the value of a current sum of money or stream of cash flows at a specified date in the future, given an assumed rate of return or interest rate. It reflects the time value of money, which holds that a sum of money has different value at different points in time because it can earn a return if invested.

In finance and economics, future value is used to express how much a present present amount will grow when it earns simple interest or compound interest, and to compare different investment or borrowing options.