Future Value Calculator
This calculator estimates how much your investment could grow over time based on a starting amount, regular contributions, and an expected annual return. It uses compound interest to project the future value of your savings.
How it works
Future value (FV) measures how much an investment will be worth at a future date assuming a constant rate of return. This calculator combines two parts: the growth of your initial lump sum and the growth of your regular monthly contributions.
The lump sum uses FV = P × (1 + r)^n, where P is the principal, r is the monthly rate (annual rate ÷ 12), and n is the number of months. The contributions use the annuity formula FV = PMT × [((1 + r)^n − 1) ÷ r], which accounts for each deposit compounding over the remaining time.
Tips
Starting early matters more than the amount you invest because compounding has more time to work. Even small monthly contributions can grow significantly over decades.
Use a conservative return rate to avoid over-optimistic projections. Historical stock market averages run around 7% after inflation, but actual results vary year to year.
FAQ
What is future value?
Future value is the projected worth of an investment at a later date, based on a starting amount, regular contributions, and an expected compound rate of return.
Does this account for inflation?
No. The result is in nominal dollars. To estimate purchasing power, use a return rate adjusted for inflation, such as subtracting about 2-3%.
How often is interest compounded here?
This calculator compounds monthly, which aligns with the monthly contribution schedule and is common for many investment accounts.