# How to Calculate Future Value When CAGR Is Known in Excel (2 Methods)

### Method 1 – Calculate the Future Value When the CAGR Is Known in Excel Using a Basic Formula

Using the following formula, we can easily calculate the Future Value for a certain investment period when the CAGR value is known.
FV = PV * (CAGR + 1)n
In this formula,
FV –  the future value which is the final amount of an investment after the investment period ends.
PV – the starting or present value of the investment money.
CAGR –  known as Compound Annual Growth Rate in percentage.
n –  the number of years for which we’ll invest the money.

For the sample dataset:
C4 – initial investment/present value (PV)
C5 – compound annual growth rate (CAGR)
C6 – no of investment periods in years (n)

• In cell C8, put the following formula: =C4*(C5+1)^C6

• Press Enter to get the result.

Read More: CAGR Formula in Excel

### Method 2 – Use the FV Function to Estimate the Future Value When the CAGR Is Known

The syntax for the FV function is- FV(rate, nper, pmt, [pv], [type])

The function takes several arguments:
rate (required)- the annual growth rate of the investment, CAGR.
nper (required) – number of payment periods in years.
pmt (required) – payment amount per period which is blank in this calculation.
pv (optional) – present value or initial investment amount.
type (optional)- 0 for payment due at the end of the payment period and 1 for payment due at the start of the period.

• In cell C10, we configured the following formula- =FV(C5,C6,,-C4,0)
C4 – initial investment/present value (PV)
C5 – compound annual growth rate (CAGR)
C6 – no of investment periods in years (n).
C7 – payment per period which is empty in this calculation.
C8 – payment is due at the end of the period i.e., 0.

• Here’s the output.

## Note

• If we use the pv argument without the negative sign, it’ll calculate the future value as negative.

• By default, the result shows as a number with decimal places. You can remove decimal places by following the steps below:
1. Go to the Home Tab.
2. Navigate to the Number panel.
3. Choose the Decrease Decimal.

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Al Arafat Siddique

Al Arafat Siddique, BSc, Naval Architecture and Marine Engineering, Bangladesh University of Engineering and Technology, has worked on the ExcelDemy project for two years. He has written over 85+ articles for ExcelDemy. Currently, he is working as a software developer. He is leading a team of six members to develop Microsoft Office Add-ins, extending Office applications to interact with office documents. Other assigned projects to his team include creating AI-based products and online conversion tools using the latest... Read Full Bio

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