Future Value Calculator
Calculate the future value of money with growth
Future Value
$20,096.61
Total Growth
+$10,096.61
Growth %
+100.97%
Effective Annual Rate
7.23%
Compounding Benefit
+$3,096.61
Visualization
Growth Projection
- Total Value
- Contributions
Final Value
$300,851
Total Contributed
$130,000
Earnings
+$170,851
Results are projections based on consistent contributions and rates.
Results are estimates for informational purposes only and do not constitute financial advice. Actual savings may vary based on interest rate changes, contribution consistency, and account terms.
Future Value Calculator Formula
Future Value (FV) equals Present Value (PV) times (1 plus rate) raised to the number of periods. This shows what a current sum will be worth in the future given a rate of return.
How the Future Value Calculator Works
- 1Enter your current lump sum amount
- 2Input the expected annual rate of return
- 3Specify the investment time horizon in years
- 4Optionally add regular contributions
- 5View the projected future value
Future Value Calculator Key Terms
- Future Value
- The amount a current investment will grow to over time at a specified rate of return.
- Present Value
- The current worth of money, which is the starting point for future value calculations.
- Time Value of Money
- The principle that money today is worth more than the same amount in the future due to earning potential.
- Discount Rate
- The interest rate used to determine future value (or present value in reverse calculations).
Future Value Calculator Tips
- •Use conservative return estimates for planning
- •Longer time horizons allow for higher growth rate assumptions
- •Account for inflation to understand real purchasing power
- •Regular contributions often matter more than initial amount
- •Compare scenarios with different rates and time periods
When to Use This Future Value Calculator
- ✓Projecting investment growth over time
- ✓Setting financial goals with specific targets
- ✓Understanding the impact of starting early
- ✓Comparing different rate of return scenarios
- ✓Planning for major future expenses
Future Value Calculator Examples
Lump Sum Investment
$25,000 invested at 7% annual return grows to $96,742 in 20 years.
Regular Contributions
$500/month at 6% for 15 years accumulates to $145,409. Total contributed: $90,000.
Combined Strategy
Starting with $10K and adding $300/month at 7% grows to nearly $300K in 25 years.
Understanding Future Value in Depth
Future value calculations answer a fundamental question: "What will my money be worth later?" This concept is central to investment planning, goal setting, and understanding the power of time in growing wealth.
The Power of Compounding
Future value growth accelerates over time because returns generate their own returns. $10,000 at 7% annual return grows to $19,672 in 10 years (97% gain), $38,697 in 20 years (287% gain), and $76,123 in 30 years (661% gain). Time is the most powerful factor.
Rate Sensitivity
Small rate differences compound dramatically. Over 30 years, $10,000 at 6% becomes $57,435, but at 8% it becomes $100,627—nearly double. This is why minimizing investment fees (which reduce effective return) matters so much.
Realistic Return Assumptions
For long-term planning, consider: stocks historically return about 10% nominally (7% real/after inflation), balanced portfolios 7-8% nominally (4-5% real), bonds 4-6% nominally (1-3% real). Use conservative estimates for important goals.
The Contribution Factor
Adding regular contributions amplifies future value dramatically. $10,000 initial at 7% for 30 years grows to $76,123. Add $200 monthly contributions and it becomes $319,000. Consistent saving often matters more than the initial amount.
Future Value Calculator FAQs
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Marcus Chen
Financial Analysis SpecialistMarcus has over 12 years of experience in quantitative finance and personal financial planning. He specializes in loan analysis, investment modeling, and consumer debt strategies. His methodologies incorporate industry-standard financial mathematics used by major lending institutions.
Editorial Standards: All calculations use industry-standard financial formulas. Content is reviewed for mathematical accuracy and updated to reflect current market conditions. This tool provides estimates for informational purposes and does not constitute financial advice.