Maturity Value Calculator
Calculate the maturity value of bonds, certificates of deposit (CDs), or other fixed-income investments. This calculator determines the value your investment will be worth at maturity, including compound interest.
Investment Details
Maturity Value Results
Maturity Value:
$0.00
Total Interest Earned:
$0.00
Effective Annual Rate:
0.00%
Investment Analysis
Annual Interest:
$0.00
Interest per Period:
$0.00
Investment Type:
N/A
Business Insights
Risk Level:
N/A
Suitability:
N/A
Alternative Options:
N/A
Understanding Maturity Value
Maturity value is the amount of money an investment will be worth at the end of its term. For fixed-income securities like bonds and certificates of deposit, this represents the principal plus accumulated interest. Understanding maturity value helps investors plan for future financial goals and compare different investment options.
Maturity Value Formula
Compound Interest Formula
- MV = P × (1 + r/n)^(n×t)
- MV = Maturity Value
- P = Principal Amount
- r = Annual Interest Rate
- n = Compounding Frequency
- t = Time in Years
Simple Interest Formula
- MV = P × (1 + r × t)
- Used for some bonds and CDs
- No compounding effect
- Straightforward calculation
- Lower returns than compound interest
Types of Investments with Maturity Value
Common Maturity Investments
Fixed-income securities with guaranteed returns
Bonds
- Government and corporate bonds
- Fixed interest payments
- Face value at maturity
- Credit risk considerations
Certificates of Deposit (CDs)
- Bank-issued time deposits
- FDA insurance up to $250,000
- Various term lengths
- Penalty for early withdrawal
Treasury Securities
- U.S. government backed
- T-Bills, T-Notes, T-Bonds
- Lowest risk investments
- Liquid and tradable
Fixed Annuities
- Insurance company products
- Guaranteed returns
- Tax-deferred growth
- Long-term commitments
Compounding Frequency Impact
| Compounding Frequency | Periods per Year | Effective Annual Rate | Best For |
|---|---|---|---|
| Annually | 1 | Same as nominal | Simple calculations |
| Semi-Annually | 2 | Slightly higher | Bonds, CDs |
| Quarterly | 4 | Higher returns | Savings accounts |
| Monthly | 12 | Much higher | High-yield accounts |
Factors Affecting Maturity Value
Interest Rate Environment
- Higher rates increase maturity value
- Fixed vs variable rates
- Real vs nominal returns
- Inflation considerations
Time Horizon
- Longer terms compound more
- Power of compounding
- Liquidity trade-offs
- Opportunity costs
Maturity Value vs Current Value
Maturity Value
- Guaranteed future value
- Fixed-income securities
- Known at investment start
- Risk-free for FDIC insured
Current Market Value
- Fluctuates with market
- Stocks, ETFs, mutual funds
- Unknown future value
- Higher risk, higher potential returns
Key Takeaways for Maturity Value
- Maturity value is the amount you'll receive when a fixed-income investment reaches its term
- Compound interest significantly increases maturity value over time
- More frequent compounding leads to higher effective returns
- FDIC-insured CDs and U.S. Treasury securities offer the lowest risk
- Compare maturity values across different investment options
- Consider your time horizon and liquidity needs when choosing investments
- Early withdrawal penalties can reduce maturity value
- Inflation can erode the real purchasing power of maturity proceeds