Future Value Calculator
Find what a lump sum and regular deposits will be worth in the future at a given rate of return, and see the split between money paid in and interest earned.
Comment utiliser cette calculatrice
- 1Enter the amount you already have as the starting amount.
- 2Add a regular deposit and choose how often you make it.
- 3Enter the annual rate of return you expect and the number of years.
- 4Choose whether deposits land at the start or the end of each period.
Comment ça marche
Future value formula
FV = PV × (1 + i)ⁿ + PMT × [((1 + i)ⁿ − 1) ÷ i] PV = present value (starting amount) PMT = deposit per period i = annual rate ÷ periods per year n = years × periods per year Deposits at the start of a period: multiply the second term by (1 + i)
The formula has two parts. The first compounds the money you already have. The second is the future value of an annuity — each deposit compounds for however many periods remain after it is made, and the bracketed term is the closed form of that sum. Depositing at the start of each period gives every deposit one extra period of growth, which is why it is multiplied by (1 + i).
Exemple détaillé
Starting with $10,000 and adding $500 a month for 20 years at 7% compounded monthly gives a future value of about $302,000 — of which $130,000 is money paid in and roughly $172,000 is interest.
Future Value Calculator : le guide complet
What future value tells you
Future value answers one question: if I leave this money alone and keep adding to it, what will it be worth? It is the foundation of every savings goal, retirement projection, and investment comparison, because it converts a stream of small deposits into a single number you can act on.
The most useful thing to do with the result is to change one input at a time. Add five years and watch the interest column grow faster than the contributions column. That divergence is compounding, and it is the reason time in the market is worth more than the size of any individual deposit.
Start-of-period versus end-of-period deposits
An ordinary annuity assumes deposits at the end of each period; an annuity due assumes the start. The difference is exactly one period of interest on every deposit, so at 7% compounded monthly over 20 years the start-of-period option is worth about 0.6% more.
In practice, salary-driven saving (a payroll deduction, an automatic transfer on payday) behaves like a start-of-period deposit, while interest credited at month end behaves like an ordinary annuity. Choose whichever matches how your money actually moves.
Nominal versus real returns
This calculator returns a nominal figure — dollars at that future date, not today's purchasing power. With 3% inflation, $302,000 in twenty years buys roughly what $167,000 buys today.
To see the result in today's money, subtract your inflation assumption from the rate of return. Entering 4% instead of 7% gives the inflation-adjusted answer directly, and it is usually the more honest number to plan against.
Questions fréquentes
What is the difference between future value and present value?
Future value takes money you have now and projects it forward. Present value does the reverse — it discounts a future amount back to what it is worth today. They use the same relationship solved in opposite directions.
Why does the compounding frequency matter?
More frequent compounding means interest starts earning its own interest sooner. At 7%, monthly compounding produces an effective annual rate of about 7.23% versus 7.00% compounded yearly — a small gap that becomes significant over decades.
Does this account for taxes?
No. The result is a pre-tax figure. In a taxable account, gains are reduced each year, which lowers the effective compounding rate. In a tax-sheltered account such as a Roth IRA, the full return compounds untouched.
Can I use this for a loan or a debt?
It works for anything that compounds, but for debts you usually want the payoff direction instead — how long a payment takes to clear a balance. The credit card payoff and mortgage calculators solve that version.