`i = ( (( "FV" )/( "PV" )) ^ ( 1/ "n" ) -1) * 1200`

Enter a value for all fields

The Interest Rate for Future Value equation computes the annual fixed compounding interest rate needed to achieve a Future Value based on a Present Value and number of periods (e.g., months).  

INSTRUCTIONS: Choose units and enter the following:

• (PV) Present Value, the initial value prior to compounding interest
• (FV) Future Value, the ending value after compounding interest
• (n) Number of periods compounding interest

Annual Interest Rate (i): The calculator returns the fixed annual interest rate as a percentage.

The Math / Science

The formula for the fixed interest rate is:

` i =  ((FV) / (PV))^(1/n) -1`

where:

• i = Fixed Interest Rate
• FV = Future Value
• PV = Present Value
• n = Number of Periods

The reported interest is based on monthly compounding periods and is multiplied by 1200 inside this formula to provide the user with the interest rate as an annual percentage.

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