Maturity Value Calculator

We have prepared the maturity value calculator to help you calculate the final value of your investment at the end of the investment period. The maturity value lets you understand how much money you will make at the end of the investment. Please check out our investment calculator to understand more about this topic.

We have written this article to help you understand the maturity value definition and how to calculate the maturity value. We will also demonstrate some examples of maturity value to help you to understand what the maturity value is.

The maturity value is the amount of money that you will receive at the end of the investment horizon. The maturity value is affected by three inputs, i.e., principal, interest rate, and time of investment.

In general, the higher the principal and interest rate, the higher the maturity value of your investment. Also, the longer the time of investment, the higher the maturity value of your investment. This is because a longer investment horizon gives more time for your money to grow.

To understand more about how to find maturity value, let's take Investment A below as an example:

• Principal: $2,000
• Interest rate: 3%
• Time of investment: 2 years

We can find the maturity value of an investment in four steps:

1. Determine the principal of the investment

   The first step is to determine the principal of the investment. For our example, the principal is $2,000.

2. Calculate the interest rate of the investment

   The next step is to compute the interest rate that applies to the investment. In our example, the interest rate of Investment A is 3%.

   If it is a bond investment, the interest rate is usually its yield to maturity (YTM). You can use our bond yield calculator, yield to maturity calculator, and bond YTM calculator to understand more about this topic.

3. Determine the time of investment

   Now, we need to know how long we have until the investment expires. The time of investment for Investment A is 2 years.

4. Calculate the maturity value

   The last step is to calculate the maturity value of Investment A using the formula below:

   maturity value = principal x (1 + interest rate) ^ time

   Hence, Investment A's maturity value is $2,000 x (1 + 3%) ^ 2 = $2,121.80.