What is a Future Value Factor in Real Estate Financial Modeling?

Future Value Factor Overview

A Future Value Factor (FVF) in real estate financial modeling is a multiplier used to calculate the future value of an investment based on a given discount rate (or growth rate) and the number of periods, typically expressed as:

Where r is the periodic growth rate (or discount rate) and n is the number of periods.

It is used to project future cash flows, property values, or investment returns by applying compound growth over time.