How this future value calculator works
Future value is the amount a sum of money today will grow into by a future date, once it has earned interest or investment returns. Because money can be invested to earn a return, a dollar today is generally worth more than a dollar later — and future value puts a number on that growth.
The calculator uses the standard formula FV = PV × (1 + r)n, where PV is the present value or starting lump sum, r is the periodic rate written as a decimal, and n is the total number of compounding periods. The periodic rate is the annual rate divided by the number of compounds per year, and n = compounds per year × years. When you add a recurring contribution, the tool also computes the future value of that stream of deposits using PMT × [((1 + r)n − 1) / r], the future value of an ordinary annuity, where r is the periodic rate and n is the total number of periods.
Assumption: contributions are aligned to the compounding schedule. A monthly contribution is spread evenly across the periods in each year (for example, a $100 monthly deposit becomes $1,200 per year, divided by the number of compounding periods), and deposits are treated as ordinary annuity payments made at the end of each period. This keeps the total contributed accurate regardless of the frequency you choose. When the rate is 0%, future value simply equals everything you put in.
Reference note: this is an estimate, not financial advice. It assumes a constant rate and ignores taxes, fees and inflation, so real-world results will differ. To grow a balance period by period, see the related compound interest calculator.
Frequently asked questions
- What is future value?
- Future value is what a sum of money today will be worth at a date in the future once it has grown at a given rate of return. It reflects the idea that money invested now earns interest or returns over time, so the same amount is worth more later.
- What is the future value formula?
- For a single lump sum the formula is FV = PV × (1 + r)n, where PV is the present value, r is the periodic rate as a decimal and n is the number of compounding periods. For a stream of equal deposits, the future value of an ordinary annuity is PMT × [((1 + r)n − 1) / r], added on top.
- What is the difference between future value and present value?
- Future value tells you what money today will grow into later, while present value tells you what a future amount is worth today. They are inverses: present value discounts a future amount back using PV = FV / (1 + r)n, whereas future value compounds a present amount forward.
- How does compounding frequency matter?
- The more often returns are compounded, the more often growth earns growth of its own, so the future value is slightly higher. Moving from annual to semi-annual, quarterly or monthly compounding raises the effective yield, though the gap shrinks as the rate gets smaller.
- Does this calculator include recurring contributions?
- Yes. You can add an optional recurring deposit, monthly or yearly, and the tool computes the future value of that stream as an ordinary annuity, with deposits made at the end of each period, then adds it to the future value of your starting lump sum.
- Is this future value calculator financial advice?
- No. It is an educational estimate based on the numbers you enter and assumes a constant rate with no taxes or fees. Real returns vary and are not guaranteed, so consult a qualified professional for decisions about your money.