Investment
Future value of an annuity due (start of period)
Every contribution arrives one period earlier and therefore compounds once more. Multiply the ordinary result by (1 + r).
The Formula
FV(due) = PMT x (((1 + r)^n - 1) / r) x (1 + r)
Every contribution arrives one period earlier and therefore compounds once more. Multiply the ordinary result by (1 + r).
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| (1 + r) | Timing adjustment | factor | The single extra period of growth applied to every contribution. |
What Each Symbol Means
(1 + r)factor
Timing adjustment
The single extra period of growth applied to every contribution.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate future value page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Future Value, filed under Finance. Every number the guide produces comes from substituting into this one line.