How to use the future value calculator
- Enter the present value, the amount you start with.
- Enter the payment each period, an amount added every period. Use 0 for a single sum.
- Enter the annual interest rate.
- Enter the number of periods and choose whether they are years, half-years, quarters or months.
- Choose whether payments are made at the end or the start of each period, and how often interest compounds. "Once per period" compounds at the same frequency as the payments.
The results show the future value, how much of it is your money and how much is interest, and a period-by-period table of the balance.
The future value formula
r is the annual rate as a decimal, k how many times it compounds a year, p how many periods there are in a year and n the number of periods. When compounding matches the period, i is simply r ÷ p; for continuous compounding, i = e^(r ÷ p) − 1. The first part of the formula grows the starting amount; the second adds up every payment with the interest it earns from the day it goes in. A payment at the start of a period earns one more period of interest than a payment at the end.
Worked example
The defaults are $10,000 today plus $1,000 at the end of each year, at 6% compounded yearly, for 10 years.
- Growth factor: 1.06^10 = 1.790848.
- The starting amount grows to $10,000 × 1.790848 = $17,908.48.
- The payments grow to $1,000 × (1.790848 − 1) ÷ 0.06 = $1,000 × 13.180795 = $13,180.79.
- Future value: $17,908.48 + $13,180.79 = $31,089.27.
You put in $10,000 + 10 × $1,000 = $20,000, so $11,089.27 is interest. Making each payment at the start of the year instead raises the result to $17,908.48 + $13,180.79 × 1.06 = $31,880.12.
How compounding changes the result
Same example, with the rate compounded more often. Payments still go in once a year.
| Compounding | Effective yearly rate | Future value |
|---|---|---|
| Annually | 6.000% | $31,089.27 |
| Semiannually | 6.090% | $31,297.75 |
| Quarterly | 6.136% | $31,405.69 |
| Monthly | 6.168% | $31,479.08 |
| Daily | 6.183% | $31,514.99 |
| Continuously | 6.184% | $31,516.22 |
Going from yearly to monthly compounding adds about $390 here. Beyond monthly, the gains are tiny. The rate, the time and the amount you add matter far more.
Future value for different goals
For monthly saving, choose months as the period: $10,000 plus $100 a month at 6% for 120 months reaches $34,581.90. For a balance with yearly contributions and tax or inflation, the interest calculator adds those. To work out what a target amount is worth today, use the present value calculator, and to solve for a payment, rate or number of periods instead, use the finance calculator.
Frequently asked questions
What is future value used for?
Future value answers "what will this be worth later?" It is used to project savings and investment balances, compare savings plans, and check whether regular deposits will reach a goal. It assumes a steady rate, so for investments with variable returns treat it as an estimate.
What is the difference between an ordinary annuity and an annuity due?
In an ordinary annuity, payments come at the end of each period, as with most savings plans and loans. In an annuity due, they come at the start, as with rent or lease payments. Because every payment in an annuity due earns one more period of interest, its future value is (1 + i) times higher.
How does inflation affect future value?
The calculator shows the future value in future dollars. To see what that will buy in today's money, divide by (1 + inflation)^years, or run the result through the inflation calculator. At 3% inflation, $31,089.27 in ten years is worth about $23,133 today.
Can I use a negative interest rate?
Yes, rates above −100% are accepted. A negative rate shrinks the balance each period, which can model an account whose fees exceed its interest.
Related calculators
- Present Value Calculator — What a future sum, or a stream of regular payments, is worth today at a given discount rate.
- Finance Calculator — Time value of money: solve for N, I/Y, PV, PMT or FV, like a financial calculator, with simple sign rules.
- Compound Interest Calculator — How a starting balance and monthly contributions grow, with any compounding frequency.
- Investment Calculator — Project an investment's end value, or find the contribution, return, starting amount or time a target needs.
Results are estimates for educational purposes and are not financial, tax or legal advice. See our disclaimer.