Future Value Calculator
Calculate the future value of your investments and savings. See how much your money will grow with compound interest, whether it's a lump sum or regular contributions.
Future Value Results
Growth Analysis
Investment Insights
Power of Compounding: Exponential growth
Time Value: Longer = more growth
Regular Contributions: Accelerate wealth
Tip: Start early and contribute regularly for maximum growth
Growth Visualization
This chart shows how your investment grows over time with compound interest
Understanding Future Value
Future value (FV) is the amount of money an investment will grow to over a period of time at a given interest rate. It helps you understand how much your savings or investments will be worth in the future.
Future Value Formula
For a lump sum investment:
FV = PV × (1 + r)^n
Where: FV = future value, PV = present value, r = rate, n = periods
Future Value with Regular Contributions
For regular contributions:
FV = PV × (1 + r)^n + PMT × [(1 + r)^n - 1] ÷ r
Where: PMT = regular payment, other variables same as above
Key Factors Affecting Future Value
- Initial Investment: Larger principal grows to higher future value
- Interest Rate: Higher rates accelerate growth exponentially
- Time Horizon: Longer periods allow more compounding
- Regular Contributions: Consistent additions significantly boost results
- Compounding Frequency: More frequent compounding increases returns
The Power of Starting Early
Even small differences in starting age can result in dramatically different outcomes due to compound interest.
| Starting Age | $5,000 at 7% for 30 years | $200/month at 7% for 30 years |
|---|---|---|
| 25 | $28,259 | $191,473 |
| 30 | $23,135 | $157,910 |
| 35 | $18,946 | $129,515 |
Compounding Frequencies
The frequency of compounding can significantly impact your returns. More frequent compounding results in higher future values.
- Annual: Interest compounded once per year
- Semi-Annual: Twice per year (slight increase)
- Quarterly: Four times per year (moderate increase)
- Monthly: Twelve times per year (significant increase)
- Daily: 365 times per year (maximum compounding effect)
Applications of Future Value
- Retirement Planning: Calculate retirement savings growth
- Investment Analysis: Project portfolio growth
- Savings Goals: Determine required contributions
- Loan Analysis: Calculate loan balance growth
- Business Planning: Project cash flow growth
Regular Contributions Impact
Regular contributions can dramatically increase your future value. Each contribution earns compound interest from the moment it's invested.
Inflation Consideration
Future value calculations don't account for inflation. To find the real purchasing power of your future value, subtract the inflation rate from your expected return rate.
Tip: Future value calculations show the incredible power of compound interest and regular contributions. Start investing early, contribute consistently, and let time and compounding work in your favor. Remember that all investing involves risk, including the potential loss of principal.