A discount rate calculator future value is an online tool that computes the future worth of a lump sum or periodic payments based on a user-specified discount rate. For example, an investor can input their desired return rate (discount rate) and future value goal to determine the amount they need to invest today.
This calculator is crucial for financial planning and forecasting. It helps individuals estimate future expenses, plan for retirement, and make informed investment decisions. The concept dates back to the time value of money theory, which states that the value of money decreases over time due to inflation and opportunity cost.