Interest Rate on $1 Table
Quickly visualize the power of compounding. This tool generates a reference table showing exactly how much $1 grows at various interest rates over time.
What is a future value interest factor (FVIF)?
An FVIF is a factor used to calculate the future value of a single sum of money at a specific point in time. It is calculated as (1 + r)ⁿ, where r is the interest rate and n is the number of periods.
How do I use this table?
Look up the intersection of your interest rate (column) and your number of years (row). Multiply that factor by your initial investment to find the future value. For example, if the factor is 2.00, your $1,000 will grow to $2,000.
Why does the table only use $1?
$1 is the base unit. By using $1, the factors can be easily scaled to any amount of money simply by multiplying. This makes the table a universal reference tool.
How does compounding frequency affect the factors?
This table assumes annual compounding. If you have monthly or quarterly compounding, the factors would be higher. You can approximate this by using a higher annual rate or more periods.