Future Value of a Growing Annuity Calculator

What does it do?

This future value of a growing annuity calculator works out the future value (FV) of a regular sum of money (Pmt) which is growing or declining at a constant rate (g) each period. The payments are made at the end of each period for n periods, and a discount rate i is applied.

Formula

The calculator uses the future value of a growing annuity formula as shown below:

FV = Pmt x ( (1 + i)n - (1 + g)n ) / (i - g)

Instructions

The Excel future value of a growing annuity calculator, available for download below, is used to compute the future value by entering details relating to the regular payment, growth rate, discount rate and the number of periods. The calculator is used as follows:

future value of a growing annuity calculator
Future Value of a Growing Annuity Calculator Preview

Step 1

Enter the regular payment amount (Pmt). The regular payment is the amount received at the end of each period for n periods. The amount must be the same for each period.

Step 2

Enter the growth rate (g). The growth rate is the rate at which the original payment (Pmt) is growing each period. The rate should be for a period, so for example, if the period is a year, then the rate should be the yearly growth rate.

Step 3

Enter the discount rate (i). The discount rate is the rate used to discount each payment amount back from the end of the period in which is was made, to the beginning of period 1 (today). The rate should be for a period, so for example, if the period is a year, then the rate should be the yearly rate.

Step 4

Enter the number of periods (n). The number of periods is entered. A period can be any term (month, year etc), but must be consistent with the discount rate provided (see step 2).

Step 5

The future value of a growing annuity calculator works out the future value (FV). The answer is the value at the end of period n of an a regular sum of money growing at a constant rate (g) each period, received at the end of each of the n periods, and discounted at a rate of i. It is the future value of a growing annuity.

Future Value of a Growing Annuity Calculator Download

The future value of a growing annuity calculator spreadsheet is available for download in Excel format by following the link below.

The future value of a growing annuity calculator is one type of tvm calculator used in time value of money calculations, discover another at the links below.

Notes and major health warnings
Users use this free annuity calculator at their own risk. We make no warranty or representation as to its accuracy and we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of a growing annuity future value calculator that you might use when considering how to calculate the future value of a growing annuity. It is purely illustrative of a future value of an annuity 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 growing annuity calculator, please let us know and we will try to fix it.
Future Value of a Growing Annuity Calculator November 6th, 2016Team

You May Also Like


Related pages


amortisation rateannuity calculator excelfob in shipping termscalculating bond discountretained earning statementdebtors turnover ratio definitionhow to do unadjusted trial balanceexamples of general ledgerfinancial accounting journal entries examplesaccounting income summarycalculate annuity in excelpayroll quiz questions and answersmanufacturing overhead journal entryweighted average process costing formulahow to calculate retained earningmarkup and margin tableaccrual adjusting entries examplescash operating cycle formulagross markup calculatoraccounting worksheet examplepetty cash expensea discount on bonds payableadjusting entries affect the cash accountwhat is payment voucher in accountingretained earning formulasample nonprofit financial statementsroce calculation exampleaccounts receivable debit creditdeferred tax asset journalinventor of double entry accountingsundry expenses accountingaccounting journal ledgerformula of operating cyclejournal entry of bills receivabledefine accrued interestcontra liabilitiespresent value and future value tablesquick ratio formula examplepartnership capital account exampleexamples of comprehensive incomeprinciple of double entry accountingannuity pv tablecalculating amortization expensewithholding tax entryhow to prepare cash flow statement from trial balancejournal entry for bills receivablemarginal cost formula calculatorledger printablesales ledger control account definitionprovision for income tax journal entryaccounting for unrealized gains and lossesperpetual inventory journal entryinventory systems accountingdays receivables formulaaccounting special journalsis dividends payable a current liabilityadvances from customers balance sheetar turnover ratio formulaformula for pv rationon controllable expenseshow to calculate depreciation rate for reducing balance methodaccounts receivable checklistabsorption overheadvertical analysis cash flow statementhow to calculate npv excelexcel rate formula examplejournaling accountingpetty voucherdebit retained earningsbad debts provisiondisposal of fixed assets cash flow statementpresent value of growing annuity formulaasset retirement obligation journal entry exampleeft accountingpayroll entries general ledgercalculating markup formula