If left undisturbed, a single amount deposited today into your savings account will grow to a larger balance. That future balance is referred to as a future value or FV. Over a long period of time, the future value of that single deposit can grow to be a significant amount for two reasons:
the initial deposit earns interest, and
the interest added to your account will also earn interest.
Earning interest on the previously earned interest is known as compound interest.
The calculation of future value determines just how much a single deposit, investment, or balance will grow to, assuming it is left untouched and earns compound interest at a specified interest rate. The calculation of the future value of a single amount can also be used to predict what a present cost of an item will grow to at a future date, when the item's cost increases at a constant rate.