Calculate the future value of a lump sum or recurring payments with compound interest. Supports ordinary annuity and annuity due modes.
The future value (FV) calculator is a core time-value-of-money (TVM) tool that answers the fundamental question: what will my money be worth in the future? Whether you have a lump sum to invest, plan to make regular contributions, or both, this calculator projects the future value using compound interest.
It supports two annuity modes — ordinary annuity (payments at the end of each period) and annuity due (payments at the beginning). This distinction matters for accurate modeling of real-world scenarios like retirement contributions, lease payments, and savings plans.
Understanding future value is essential for setting financial goals, comparing investment options, and planning for milestones like retirement, education funding, or a home purchase. The future value formula accounts for the compounding frequency and contribution schedule to project how your money will grow over time. Whether your contributions are monthly, quarterly, or annual, and whether interest compounds daily or yearly, the output adjusts accordingly for precise forecasting.
Without understanding future value, you cannot set meaningful savings targets. If you need $1 million in 30 years, how much must you save monthly? This calculator answers that question directly and shows the compounding growth trajectory over time. By projecting growth under realistic assumptions, you can set saving targets and contribution schedules that are achievable rather than aspirational.
FV of lump sum: FV = PV x (1 + r/n)^(n*t). FV of annuity (ordinary): FVA = PMT x [((1+r/n)^(n*t) - 1) / (r/n)]. FV of annuity due: FVA_due = PMT x [((1+r/n)^(n*t) - 1) / (r/n)] x (1+r/n). Total FV = FV_lump + FVA.
Result: Future Value: $299,321
Starting with $10,000 and adding $500 monthly at 7% annual return for 20 years produces approximately $299,321. The lump sum grows to about $40,387, and the monthly contributions accumulate to about $258,934. Total contributions were $130,000 — meaning $169,321 came from investment returns.
The future value calculation is one of the five core TVM functions (along with present value, payment, rate, and periods). Together, they form the foundation of all financial planning, from mortgage amortization to retirement projections. Mastering future value helps you think in terms of opportunity cost — every dollar you spend today has a future value you are giving up.
A 25-year-old who invests $300/month at 8% will have about $1.05 million at age 65. A 35-year-old investing the same amount at the same rate accumulates only about $447,000. The 10-year head start more than doubles the outcome — that is the power of compounding over time.
Always consider inflation when interpreting future values. $1 million in 30 years at 3% inflation has the purchasing power of about $412,000 in today's dollars. For realistic goal-setting, either use real returns (nominal minus inflation) or convert nominal future values to today's dollars.
In an ordinary annuity, payments occur at the end of each period. In an annuity due, payments occur at the beginning. Annuity due produces a slightly higher future value because each payment has one extra period to compound.
For a diversified stock portfolio, 7-10% nominal (before inflation) is a common long-term assumption. For bonds, 3-5%. For savings accounts, 2-4%. Use the after-fee, after-tax rate for the most realistic projection.
Not directly. To calculate real (inflation-adjusted) future value, subtract the expected inflation rate from the nominal return rate. For example, use 4% instead of 7% if you expect 3% inflation.
Yes — enter your current savings as the present value, your monthly contribution as the payment, your expected return, and years until retirement. The result gives you projected retirement savings in nominal dollars.
Rearrange the annuity formula: PMT = FV x (r/n) / [((1+r/n)^(n*t) - 1)]. Or simply adjust the payment amount in this calculator until you reach your target.
More frequent compounding (monthly vs annually) increases the future value slightly because interest earns interest more often. The difference is most noticeable at higher rates and longer time horizons.