What is future value?
Future value (FV) is the value that a current sum of money or stream of cash flows will have at a specified future date, given an assumed rate of return or interest rate. The formula for a single sum is FV = PV × (1 + r)^n.
Future value calculations underpin venture-fund modelling, employee equity NPV/IRR analysis, exit-multiple math and runway scenarios. Founders should understand both future value and its mirror concept, present value, when negotiating notes, SAFEs and revenue-share agreements.