Future value of varying cash flow
Calculate Future Value of Varying Cash Flows
This cash flow represents the yearly income from an initial investment of $10,000. The annual interest rate is 2%.
Year 1 — $2000
Year 2 — $1500
Year 3 — $3000
Year 4 — $3800
Year 5 — $5000
For the future value of this regular (periodic) cash flow:
FutureVal = fvvar([-10000 2000 1500 3000 3800 5000], 0.02)
FutureVal = 4.7131e+03
An investment of $10,000 returns this irregular cash flow. The original investment and its date are included. The periodic interest rate is 3%.
-$1000 — January 12, 2000
$2500 — February 14, 2001
$2000 — March 3, 2001
$3000 — June 14, 2001
$4000 — December 1, 2001
To calculate the future value of this irregular (nonperiodic) cash flow:
CashFlow = [-10000, 2500, 2000, 3000, 4000]; CFDates = [datetime(2000,1,12) datetime(2001,2,14) datetime(2001,3,3) datetime(2001,6,14) datetime(2001,12,1)]; FutureVal = fvvar(CashFlow, 0.03, CFDates)
FutureVal = 1.0731e+03
CashFlow — Varying cash flows
Varying cash flows, specified as a vector.
You must include the initial investment as the initial cash flow value (a negative number).
Rate — Periodic Interest rate
scalar numeric decimal
Periodic interest rate, specified as a scalar numeric decimal.
CFDates — Dates on which the cash flows occur
CashFlow contains regular (periodic) cash
flows (default) | datetime array | string array | date character vector | serial date number
(Optional) Dates on which the cash flows occur, specified as a vector using a datetime array, string array, or date character vectors.
CFDates for irregular (nonperiodic) cash flows.
To support existing code,
accepts serial date numbers as inputs, but they are not recommended.
FutureVal — Future value of a varying cash flow
Future value of a varying cash flow, returned as a scalar numeric.
 Jan Mayle. Standard Securities Calculation Methods. Securities Industry Assn, Volumes I-II, 3rd edition, 1994
Version HistoryIntroduced before R2006a
R2022b: Serial date numbers not recommended
fvvar supports serial date numbers,
datetime values are recommended instead. The
datetime data type provides flexible date and time
formats, storage out to nanosecond precision, and properties to account for time
zones and daylight saving time.
To convert serial date numbers or text to
datetime values, use the
datetime function. For example:
t = datetime(738427.656845093,"ConvertFrom","datenum"); y = year(t)
y = 2021
There are no plans to remove support for serial date number inputs.