Future Value Calculator
Find out what your investment will be worth in the future using compound interest — essential for financial planning.
Frequently Asked Questions
About this calculator
Future value answers a simple question: what will money invested today be worth later? It combines your starting amount, any regular contributions, the rate of return and the time to give one number. It is the foundation of retirement planning, goal planning and comparing savings options.
This calculator takes an opening investment, an annual return, a number of years, a compounding frequency and an optional monthly contribution. It reports the final value, your total contributions, the interest earned and your overall return. Amounts are in dollars but the formula works in any currency.
How to use it
- Enter the Initial Investment.
- Enter the expected Annual Return and the Time Period in years.
- Choose the Compounding frequency.
- Enter the Monthly Contribution, or 0 for none.
- Press Calculate Future Value and read the breakdown.
Future value formula
FV = PV × (1 + r/n)nt + PMT × [((1 + i)N − 1) ÷ i]
PV is the present value, r the annual rate, n the compounding periods a year, PMT the monthly contribution, i the monthly rate and N the number of months. The first term grows your lump sum and the second grows your contributions.
Worked example
$10,000 plus $100 a month at 7% for 10 years, compounded monthly
| Lump sum grows to | $20,096.61 |
| Contributions grow to | $17,308.48 |
| Future value | $37,405.09 |
| Total put in | $22,000 |
| Interest earned | $15,405.09 |
Interest adds 70% on top of the $22,000 you contributed.
Tips and common mistakes
- Be realistic with the return. A 12% assumption makes a plan look easy and a miss painful.
- Run three cases: pessimistic, expected and optimistic.
- Adjust the result for inflation to see what the money will actually buy.
- Increase contributions with your income. Even 5% more a year changes the outcome a lot.
- Remember taxes and fees reduce the net return.
Frequently asked questions
What is future value?
It is the value of an investment at a specified date in the future, assuming a given growth rate.
What is the Rule of 72?
Divide 72 by the annual rate to estimate the years to double. At 8% money doubles in about 9 years.
How does compounding frequency affect the result?
More frequent compounding earns slightly more. The gain from monthly to daily is small.
What return should I assume?
Use the rate your product actually offers for fixed income, and a conservative long-term estimate for equities, often 8 to 10% nominal.
What is the difference between future value and present value?
Present value is what a future sum is worth today. Future value is what today's money becomes later. They are two sides of the same formula.
Are monthly contributions at the start or end of the month?
They are treated as end-of-month deposits.