1. What is Future Value of Uneven Cash Flow?

The Future Value of Uneven Cash Flow calculates the total value of a series of cash flows at a future date, considering different amounts received or paid at different time periods with compound interest.

2. How Does the Calculator Work?

The calculator uses the future value formula:

Where:

• \( CF_t \) — Cash flow at period t ($)
• \( r \) — Interest rate per period (decimal)
• \( T \) — Total number of periods
• \( t \) — Specific period number

Explanation: Each cash flow is compounded forward to the final period using the appropriate time factor, then all values are summed to get the total future value.

3. Importance of Future Value Calculation

Details: Calculating future value of uneven cash flows is essential for investment analysis, retirement planning, project evaluation, and financial decision-making where cash flows vary over time.

4. Using the Calculator

Tips: Enter cash flows as comma-separated values (e.g., "100,200,300"), interest rate as decimal (e.g., 0.05 for 5%), and total periods. All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between even and uneven cash flows?
A: Even cash flows have equal amounts each period (annuity), while uneven cash flows have varying amounts, requiring individual calculation for each period.

Q2: Can this calculator handle negative cash flows?
A: Yes, negative values represent cash outflows and will reduce the total future value accordingly.

Q3: How does the timing of cash flows affect future value?
A: Earlier cash flows have more time to compound, so they contribute more to the total future value than later cash flows.

Q4: What's the difference between future value and present value?
A: Future value calculates what cash flows will be worth later, while present value calculates what they're worth today.

Q5: Can this be used for monthly compounding?
A: Yes, ensure the interest rate and periods are consistent (e.g., monthly rate and monthly periods).