Future Value Calculator
$
$
6.00%
10 yrs
Future Value$50,969.84
Total Interest$16,969.84
Total Contributions$34,000.00
Future value answers a single question: how much will a sum grow to by a chosen date once compounding and regular deposits are applied? This calculator combines a starting balance, a recurring contribution, and a compounding frequency to project the ending amount, then separates how much you contributed from how much was earned as interest. Choosing daily, monthly, quarterly, semiannual, or annual compounding lets you match real account terms.
Formula
FV = PV(1+r/n)^(nt) + PMT·[((1+r/n)^(nt) − 1)/(r/n)]
- PV
- Present value (starting balance)
- PMT
- Payment deposited each compounding period
- r
- Annual rate as a decimal
- n
- Compounding periods per year (1, 2, 4, 12, or 365)
- t
- Number of years
How it works
- Enter the present value (your starting balance), the annual rate, the number of years, and the recurring payment added each compounding period.
- Pick a compounding frequency: annual (1), semiannual (2), quarterly (4), monthly (12), or daily (365) periods per year. The payment is treated as a deposit at the end of each period.
- The calculator grows the lump sum and the stream of payments, sums them for the future value, then subtracts total contributions to isolate the interest earned.
Worked example
Start with $10,000, add $200 each month for 10 years at 6% compounded monthly.
- Periods: n = 12, nt = 120; monthly rate = 0.06 ÷ 12 = 0.005.
- Lump sum: 10,000 × 1.005^120 ≈ $18,193.97.
- Payments: 200 × (1.005^120 − 1) ÷ 0.005 ≈ $32,775.87.
- Contributions: 10,000 + 200 × 12 × 10 = $34,000, so interest = 50,969.84 − 34,000 = $16,969.84.
Future value about $50,969.84, of which $34,000 is contributions and $16,969.84 is interest earned.
Frequently asked questions
- What is the difference between future value and present value?
- Future value projects what a balance becomes after growth, while present value works backward to find what a future amount is worth today. This tool computes future value; a present-value calculator handles the reverse discounting.
- How does compounding frequency affect the result?
- More frequent compounding earns interest on interest sooner, so daily compounding yields slightly more than annual at the same nominal rate. The difference grows with higher rates and longer time horizons.
- Are deposits added at the start or end of each period?
- This calculator treats each payment as an ordinary annuity deposit made at the end of the compounding period. That means the most recent deposit earns no interest in its final period.
- Does the result account for inflation or taxes?
- No. The future value shown is a nominal figure before inflation and before any taxes on interest. To gauge real buying power, adjust the result with an inflation calculator.