What is future value?

Future value (FV) is the value of a current asset at a future date, based on an assumed growth or interest rate. It tells you how much money you'll have at a future point given compound growth.

What is the future value formula?

For a lump sum: FV = PV × (1 + r)^n. For regular contributions: FV = PMT × ((1+r)^n − 1) / r, where r is the periodic rate and n is the number of periods. Combined: FV = PV × (1+r)^n + PMT × ((1+r)^n − 1) / r.

What is compounding frequency?

Compounding frequency is how often interest is calculated and added to the principal. Monthly compounding (12×/year) results in slightly more growth than annual compounding at the same stated rate, because interest earns interest more frequently.

What is the difference between future value and present value?

Future value answers: how much will $X today be worth in N years? Present value answers the reverse: how much is a future sum worth in today's dollars? They use the same formula rearranged — PV = FV / (1+r)^n.

Does future value assume contributions at the start or end of the period?

It depends on the annuity type. An ordinary annuity (most common) assumes contributions at the end of each period. An annuity due assumes contributions at the beginning — this results in slightly higher future value because each contribution earns one extra period of interest.

Future Value Calculator

Calculate how much your investment will be worth in the future with compound interest. Supports lump sum investments, regular contributions (monthly or annual), and different compounding frequencies.

Present Value / Initial Amount ($)

Annual Interest Rate (%)

Years

Compounding Frequency

Regular Contribution ($)

Contribution Frequency

Future Value Results

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Total Interest Earned —

Growth Multiple —

How Future Value Works

Future value uses compound interest — each period's interest is added to the principal, so the next period earns interest on a larger amount. The earlier you start, the more powerful compounding becomes.

Lump sum formula: FV = PV × (1 + r/n)^n×t

With regular contributions: FV = PV × (1+r/n)^nt + PMT × ((1+r/n)^nt − 1) / (r/n)

Where r = annual rate, n = compounding periods per year, t = years, PMT = contribution per compounding period.

The Power of Time

A single $10,000 investment at 7% annual return becomes $76,123 in 30 years — without adding a single additional dollar. Adding just $200/month grows the same account to $302,000. Starting 10 years earlier can more than double your ending balance.