Future value of growing annuity is the calculation of future value of a series of cash flows that grow at a constant rate for each period / year.
The future value of a growing annuity is calculated using the following formula :
FVGA = P * [ [ ( 1 + r ) n – ( 1 + g ) n ] / [ ( r- g ) ] ]
FVGA = Future value of growing annuity ; P = First year payment ; g = growth rate ;
r = Discount rate / rate of interest ; n = Number of years ;
In the calculator below insert the values of First year payment, growth rate, Discount rate and Number of years to arrive at the Future value of growing Annuity.