Future Value Calculator

Find out what your investment will be worth in the future using compound interest — essential for financial planning.

Initial Investment ($)

Annual Return (%)

Time Period (Years)

Compounding

Monthly Contribution ($)

Frequently Asked Questions

Future value (FV) is the value of an asset or cash at a specific date in the future based on an assumed rate of growth. FV = PV × (1 + r)^n.

The Rule of 72 estimates how long an investment doubles: divide 72 by the annual interest rate. At 8% annually, money doubles in 72/8 = 9 years.

The more frequently interest compounds, the more you earn. Daily compounding yields slightly more than annual compounding at the same rate.

The US S&P 500 has historically returned about 7–10% annually over the long term. Diversified index funds are commonly recommended for long-term investors.

About this calculator

Future value answers a simple question: what will money invested today be worth later? It combines your starting amount, any regular contributions, the rate of return and the time to give one number. It is the foundation of retirement planning, goal planning and comparing savings options.

This calculator takes an opening investment, an annual return, a number of years, a compounding frequency and an optional monthly contribution. It reports the final value, your total contributions, the interest earned and your overall return. Amounts are in dollars but the formula works in any currency.

How to use it

Enter the Initial Investment.
Enter the expected Annual Return and the Time Period in years.
Choose the Compounding frequency.
Enter the Monthly Contribution, or 0 for none.
Press Calculate Future Value and read the breakdown.

Future value formula

FV = PV × (1 + r/n)^nt + PMT × [((1 + i)^N − 1) ÷ i]

PV is the present value, r the annual rate, n the compounding periods a year, PMT the monthly contribution, i the monthly rate and N the number of months. The first term grows your lump sum and the second grows your contributions.

Worked example

$10,000 plus $100 a month at 7% for 10 years, compounded monthly

Lump sum grows to	$20,096.61
Contributions grow to	$17,308.48
Future value	$37,405.09
Total put in	$22,000
Interest earned	$15,405.09

Interest adds 70% on top of the $22,000 you contributed.

Tips and common mistakes

Be realistic with the return. A 12% assumption makes a plan look easy and a miss painful.
Run three cases: pessimistic, expected and optimistic.
Adjust the result for inflation to see what the money will actually buy.
Increase contributions with your income. Even 5% more a year changes the outcome a lot.
Remember taxes and fees reduce the net return.

Frequently asked questions

What is future value?

It is the value of an investment at a specified date in the future, assuming a given growth rate.

What is the Rule of 72?

Divide 72 by the annual rate to estimate the years to double. At 8% money doubles in about 9 years.

How does compounding frequency affect the result?

More frequent compounding earns slightly more. The gain from monthly to daily is small.

What return should I assume?

Use the rate your product actually offers for fixed income, and a conservative long-term estimate for equities, often 8 to 10% nominal.

What is the difference between future value and present value?

Present value is what a future sum is worth today. Future value is what today's money becomes later. They are two sides of the same formula.

Are monthly contributions at the start or end of the month?

They are treated as end-of-month deposits.