Glossary term
Future value
Future value is the estimated later value of a starting amount, recurring contributions, or both after applying growth over time.
Plain meaning
What future value means
Future value projects money forward. It combines the amount already available, new contributions where applicable, the time period, contribution timing, and an assumed growth rate.
Formula role
How OpenBook uses it
Future value is usually an output in OpenBook calculators. It may be calculated from a starting amount, contribution amount, contribution frequency, contribution timing, time period, and growth-rate assumption such as a nominal return.
It is the forward-looking counterpart to present value. Present value discounts a future amount back to today; future value compounds an amount forward to a later date.
Common assumption
What the result assumes
Many calculators assume a steady rate. That makes the math transparent, but it does not simulate market volatility, changing contribution amounts, fees, taxes, or sequence of returns unless the calculator says so.