Maturity Value Calculator

Created by Wei Bin Loo
Reviewed by Tibor Pál, PhD candidate and Adena Benn
Last updated: Feb 20, 2024


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.

What is maturity value? Maturity value definition

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.

How to calculate maturity value?

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.

FAQ

Can the maturity value be negative?

No, the maturity value can never be negative. This is because the maturity value is a monetary value, and it is impossible to have a negative monetary value.

How do I find the maturity value?

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

  1. Determine the principal of the investment.

  2. Calculate the interest rate of the investment.

  3. Determine the time of investment.

  4. Apply the maturity value formula:

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

What is the maturity value of a $1,000 1-year investment at 5% interest rate?

The maturity value of the investment will be $1,050. You can calculate this using the maturity formula:

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

What is interest rate in a bond investment?

The interest rate of a bond investment is usually called the yield to maturity (YTM). It represents the annual rate of return of your bond investments.

Wei Bin Loo
Principal
$
Interest rate
%
Time of investment
yrs
Maturity value
$
Check out 39 similar equity investment calculators 📈
Beta stockCAPM (capital asset pricing model)Carried Interest… 36 more
People also viewed…

Combined ratio

Our combined ratio calculator can help you to analyze an insurance company's operational profitability.

Personal loan EMI

Use the personal loan EMI calculator to estimate the monthly payments on your personal loan.

Plastic footprint

Find out how much plastic you use throughout the year with this plastic footprint calculator. Rethink your habits, reduce your plastic waste, and make your life a little greener.

Sunbathing

Do you always remember to put on sunscreen before going outside? Are you sure that you use enough? The Sunbathing Calculator ☀ will tell you when's the time to go back under an umbrella not to suffer from a sunburn!
Copyright by Omni Calculator sp. z o.o.
Privacy, Cookies & Terms of Service