Future Value Calculator
About Future Value Calculator
What Is Future Value?
Future value is what a sum of money today will be worth at a specific point in the future, given a certain rate of return. It’s the foundation of all investment planning. If you can earn 7% annually, $10,000 today becomes $19,672 in 10 years. Add monthly contributions and the number climbs dramatically. This calculator handles both lump-sum investments and those with periodic additions.
Future Value Formulas
For a lump sum: FV = PV x (1 + r)^n. For a series of equal payments (annuity): FV = PMT x [((1 + r)^n - 1) / r]. Combine both if you have an initial deposit plus regular contributions.
How to Use This Calculator
Enter your initial investment, optional monthly contributions, annual interest rate, and the number of years. The calculator shows the future value, total contributions, and total interest earned. A visual breakdown helps you see how much of the final amount comes from your deposits versus investment growth.
Frequently Asked Questions
What rate of return should I assume?
For stocks, 7-10% is historically reasonable. Bonds average 4-6%. Savings accounts offer 3-5%. Use a conservative estimate for financial planning.
Does this account for taxes?
No. Returns shown are pre-tax. If investing in a taxable account, reduce the expected rate by your marginal tax rate for a more conservative estimate.
How do monthly contributions affect future value?
Dramatically. Regular contributions benefit from compounding over their entire investment horizon. Even small monthly amounts add up significantly over long periods.
Related Tools
