Future value (FV) is what a sum of money today will grow to at a future date, given an assumed rate of return and compounding schedule. It's the core calculation behind retirement projections, savings goals, and investment planning — answering the question "If I invest this today, and keep contributing, what will it be worth later?"
✓ Modify the values and click Calculate to use
$
%
yearsmonths
$
Click "Calculate" to see your results.
What Is Future Value?
Future value (FV) is the projected worth of an investment or sum of money at a specific point in the future, based on an assumed rate of growth. It accounts for the time value of money — the principle that a dollar today is worth more than a dollar tomorrow because of its earning potential.
For a lump sum, future value is calculated as FV = PV × (1 + r/n)^(nt). When recurring contributions are added, each deposit grows for its own remaining time in the investment, and all growth is summed together — this calculator handles both automatically.
Future Value Formula
FV = PV × (1 + r/n)nt
FV= Future value
PV= Present value (starting amount)
r= Annual interest rate (decimal)
n= Compounding periods per year
t= Number of years
Future Value Examples
Lump Sum Only
$10,000 at 5%, monthly compounding, 10 years, no contributions.
Present Value
$10,000.00
Future Value
$16,470.09
Interest Earned
$6,470.09
With Monthly Contributions
Same as above, plus $100/month contributions.
Total Contributions
$22,000.00
Future Value
$31,998.32
Interest Earned
$9,998.32
Regular contributions nearly double the outcome over the same 10 years.
Why Future Value Matters
Retirement Planning
Project how current savings and ongoing contributions will grow toward a retirement goal.
Goal-Based Saving
Determine how much to save monthly to hit a target amount for a home, education, or major purchase.
Investment Comparisons
Compare how different rates of return or compounding schedules affect long-term outcomes.
Understanding Compounding
Visualize how contributions and interest combine over time to accelerate growth.
Frequently Asked Questions
Common questions about future value and how it's calculated.
What is future value?
Future value (FV) is the projected worth of an investment at a future date, based on an assumed rate of growth. It accounts for the time value of money — a dollar today is worth more than a dollar tomorrow because of its earning potential.
How is future value calculated?
For a lump sum: FV = PV × (1 + r/n)^(nt), where PV is present value, r is annual rate, n is compounding periods per year, and t is years. With contributions, each deposit grows for its own remaining time and all growth is summed.
What is the difference between future value and present value?
Present value is what a sum is worth right now. Future value is what that sum will grow to over time. They're inverse concepts — present value discounts a future amount back to today; future value projects a current amount forward.
How do recurring contributions affect future value?
They significantly increase it, because each new deposit also earns compound interest for its remaining time in the investment. $10,000 at 5% for 10 years grows to about $16,289 alone, but adding $100/month brings it to roughly $31,764 — nearly double.
Does compounding frequency matter?
Yes, but the difference is often smaller than expected. $10,000 at 5% for 10 years compounds to $16,288.95 annually vs. $16,486.65 daily. The gap widens with higher rates and longer periods, but for most practical purposes annual vs. monthly produces similar results.
What is a realistic interest rate to use?
For stocks, 7-10% is a common long-term average. High-yield savings currently offer 4-5%. Bonds typically return 3-5%. For conservative planning use 5-7%; for aggressive growth projections, 8-10% may be reasonable.
Can future value be used for retirement planning?
Yes — it's fundamental to it. A 30-year-old contributing $500/month averaging 8% returns would accumulate roughly $1.05 million by age 65. Adjusting the inputs helps find the right savings rate or timeline.