Future Value Calculator
Project the future value of a present amount with optional recurring contributions. Choose compounding frequency and contribution timing.
What this calculator does
This calculator returns the projected future value of a starting amount plus optional regular contributions, given an annual interest rate, compounding frequency, and time horizon. Use it for savings plans, retirement projections, education funds, or any general time-value-of-money question. For fixed-term bank CDs, use the CD Calculator instead.
Formula
Lump sum: FVlump = PV × (1 + r/n)^(n × t)
Ordinary annuity (end of period): FVcont = PMT × [((1 + i)^N − 1) / i]
Annuity due (start of period): FVcont = PMT × [((1 + i)^N − 1) / i] × (1 + i)
Total: FV = FVlump + FVcont
Where i = r/n is the periodic rate and N = n × t is the total number of periods. Contributions are normalized to the compounding frequency.
Variable definitions
PV— Present value — the starting lump-sum amount.PMT— Periodic contribution amount, normalized to the compounding period.r— Annual interest rate as a decimal (e.g. 0.06 for 6%).n— Number of compounding periods per year.t— Time in years.i— Periodic interest rate = r ÷ n.N— Total number of compounding periods = n × t.
Step-by-step calculation
- Compute the periodic rate
i = r / nand total periodsN = n × t. - Compute the lump-sum future value
FVlump = PV × (1 + i)^N. - Normalize the contribution to the compounding period:
PMT = annual contribution ÷ n(or use the entered per-period amount). - Compute the annuity future value with the ordinary or annuity-due formula above.
- Add the two pieces; total contributions = PMT × N, interest earned = FV − PV − total contributions.
Worked example
PV = $10,000, contribution = $200/month, rate = 6% annual, monthly compounding, 10 years, ordinary annuity.
- i = 0.06 / 12 = 0.005; N = 120
- FVlump = 10,000 × (1.005)120 ≈ $18,193.97
- FVcont = 200 × [(1.005120 − 1) / 0.005] ≈ $32,775.87
- Total FV ≈ $50,969.84; total contributions = $24,000; interest earned ≈ $16,969.84
How to use this calculator
- Enter the present value (starting amount) — zero is fine if you're projecting contributions only.
- Enter the annual rate and the number of years.
- Pick a compounding frequency.
- Optionally add a periodic contribution and pick ordinary or due timing.
Common mistakes
- Mixing rate and period units: always enter an annual rate; the calculator handles the periodic split internally.
- Forgetting contribution timing: ordinary vs due can change the result by one period of interest — check which one your savings plan uses.
- Assuming guaranteed returns: these are projections at a constant assumed rate; real-world returns vary.
Frequently asked questions
›What is future value?
Future value (FV) is what an amount of money today, or a series of future payments, will be worth at a chosen point in the future given an assumed interest rate and compounding schedule. It is the core building block of time-value-of-money math.
›How is future value calculated for a lump sum?
FV = PV × (1 + r/n)^(n × t), where PV is the present value, r is the annual rate as a decimal, n is the compounding periods per year, and t is the number of years.
›How are regular contributions handled?
Each contribution earns interest from the moment it's deposited until the end of the term. The calculator uses the future value of an annuity formula and lets you choose ordinary annuity (deposit at end of period) or annuity due (deposit at start of period).
›What is the difference between ordinary annuity and annuity due?
Ordinary annuity assumes contributions are made at the end of each period. Annuity due assumes they're made at the start, so each one earns one extra period of interest — annuity-due totals are slightly higher than ordinary-annuity totals at the same rate and term.
›How is this different from the CD Calculator?
The CD Calculator is specifically modeled for fixed-term bank certificates of deposit — single deposit, fixed APY, defined term. Future Value is a general time-value-of-money tool that also supports recurring contributions and contribution timing, useful for savings plans, retirement projections, and education funds.
›Does the calculator account for inflation or taxes?
No — future value is shown in nominal dollars. Subtract expected inflation from your rate to get a real-return projection, and consult a tax professional for tax treatment.
›What about negative interest rates or zero contributions?
Both are supported. A zero contribution reduces the formula to a pure lump-sum FV, and negative rates correctly produce a future value less than the present value.
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