1. What is the Future Price Calculation?

The future price calculation estimates what a stock or investment might be worth in the future based on its current price and an assumed constant growth rate over a specified number of years.

2. How Does the Calculator Work?

The calculator uses the future price formula:

Where:

• \( Current\ Price \) — The present value of the stock or investment in dollars
• \( growth\ rate \) — The expected annual growth rate (as a decimal, e.g., 0.1 for 10%)
• \( years \) — The number of years for the projection

Explanation: The formula compounds the growth rate over the specified number of years to project what the current price would become if it grew at that constant rate.

3. Importance of Future Price Estimation

Details: Future price estimation helps investors evaluate potential investments, set price targets, and make informed decisions about buying, holding, or selling assets.

4. Using the Calculator

Tips: Enter current price in dollars, growth rate as a decimal (e.g., 0.1 for 10%), and number of years. All values must be valid (price > 0, growth rate ≥ 0, years between 1-100).

5. Frequently Asked Questions (FAQ)

Q1: How accurate are these projections?
A: Projections assume constant growth, which rarely happens in reality. They're estimates, not guarantees.

Q2: What's a reasonable growth rate to use?
A: Historical market averages are about 7-10% annually, but individual stocks may vary significantly.

Q3: Does this account for dividends?
A: No, this is a price-only calculation. For total return, you'd need to include dividend reinvestment.

Q4: What about inflation?
A: This calculates nominal future price. For real (inflation-adjusted) value, use a real growth rate.

Q5: Can I use this for other investments?
A: Yes, it works for any asset with a constant expected growth rate, though most investments have variable growth.