Future Value Calculator
Calculate the future value of an investment or savings.
The Future Value Calculator shows how much your investments will grow over time, accounting for compound interest and regular contributions. Use this to project savings for retirement, education, or major purchases and understand the power of time and compound growth.
Examples
Lump Sum Investment
With Monthly Contributions
Frequently Asked Questions
What is future value?
How does compounding affect future value?
What is the difference between future value and present value?
Quick Tips
- •Compounding frequency matters more at higher interest rates.
- •Regular contributions have a powerful effect over long time horizons.
- •The Rule of 72: divide 72 by the interest rate to estimate years to double.
- •Adjust for inflation to get real purchasing power projections.
The Future Value Calculator shows how much your investments will grow over time, accounting for compound interest and regular contributions. Use this to project savings for retirement, education, or major purchases and understand the power of time and compound growth.
How to Use This Calculator
Enter your initial investment (present value), the annual interest rate, the number of years, and any periodic contributions. Select the compounding frequency. Click Calculate to see the future value, total interest earned, and year-by-year growth.
Understanding the Formula
FV = PV * (1 + r/n)^(n*t) + PMT * ((1 + r/n)^(n*t) - 1) / (r/n). Where PV = present value, r = annual rate, n = compounding frequency, t = years, PMT = periodic payment.
Examples
Lump Sum Investment
$10,000 invested at 7% annually for 10 years grows to about $19,672 with no additional contributions.
With Monthly Contributions
$10,000 initial plus $500/month at 7% for 10 years grows to about $106,149. The contributions add up to $60,000, and interest earns about $36,477.
Frequently Asked Questions
What is future value?
Future value is what an investment made today will be worth at a specified date in the future, assuming a certain rate of growth.
How does compounding affect future value?
More frequent compounding means interest is calculated on previously earned interest more often, resulting in a higher future value.
What is the difference between future value and present value?
Future value tells you what today's money will grow to. Present value tells you what future money is worth today. They are inverse operations.
Assumptions & Limitations
- Interest rate remains constant for the entire period; actual rates fluctuate based on market conditions.
- Contributions are made at fixed intervals (monthly, annually) and in fixed amounts; real-life contributions may vary.
- No withdrawals are made during the investment period.
- Does not account for taxes on interest earned (important for non-retirement accounts).
- Inflation is not factored in; your real purchasing power may be lower than the nominal future value.