Last updated: Jul 27, 2024

Maturity Value Calculator

Q: 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.

Q: 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 .

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A strategy consultant graduated from Imperial College London with abundant experience advising companies on analytics strategy and transformation projects. Having passed his CFA Level 2 with his results ranked above the 90th percentile, he possesses a broad expertise in the finance and investment space. He is also passionate about product management and is currently a Certified Scrum Product Owner (CSPO). He is a Harry Potter fanatic and a chess and basketball enthusiast. See full profile

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Tibor is pursuing a Ph.D. in Statistical Methods in Economics at the University of Salerno. His main research activity is developing econometric models applied in macroeconomics with a primary focus on the interrelationship between finance and the real economy. His professional experience includes working as a general ledger (GL) accountant and a financial analyst. At Omni, he translates financial queries and regulations into calculators through JS coding with clear and user-friendly content. He spends the academic year in Italy but is keen to travel to Hungary, Poland, and Malaysia in his free time. Interested in gastronomy and vinery, he is able to feed the whole team with pörkölt - a delicious dish from his homeland. See full profile

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Adena Benn is an Information Technology teacher with a degree in Computer Science. She has been teaching high schoolers since 1996 and loves everything computers. She loves problem-solving, so creating calculators to solve real-world problems is her idea of fun. She writes children's stories, is a seamstress, and is an avid reader. In her spare time, she travels and enjoys nature. See full profile

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Table of contents

What is maturity value? Maturity value definition How to calculate maturity value?FAQs

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:

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.
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.
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.
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.

FAQs

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:

Determine the principal of the investment.
Calculate the interest rate of the investment.
Determine the time of investment.
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.