Future Value Calculator
Project what a lump sum plus regular yearly contributions will grow to at a given rate of return. Use it to forecast investments, savings plans, and retirement balances.
Last updated: May 2026
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About this calculator
Future value (FV) is what money today will be worth at a later date once it has earned compound interest. This calculator combines two pieces: the growth of your starting amount and the growth of a stream of equal yearly contributions. The lump-sum part follows FV = PV × (1 + r)^n, where PV is the Present Value, r is the annual return as a decimal, and n is the number of years. The contributions part is an ordinary annuity: FV = PMT × ((1 + r)^n − 1) / r, where PMT is the Annual Contribution made at the end of each year. The tool adds the two to give your projected balance. The power of the formula is compounding — returns earn returns — so small differences in rate or time produce large differences in the end balance. Edge cases: when the rate is 0%, the annuity term reduces to PMT × n (no growth); a negative rate models a declining asset. The model assumes a constant annual return and end-of-year contributions; real markets vary year to year, and contributions made monthly grow slightly more than the same total contributed annually. Always treat the output as a smooth projection, not a guarantee.
How to use
Example 1 — $10,000 now plus $2,000 a year at 7% for 10 years. Enter Present Value = 10000, Annual Return Rate = 7, Number of Years = 10, Annual Contribution = 2000. The lump sum grows to 10000 × 1.07^10 = $19,671.51; the contributions grow to 2000 × (1.07^10 − 1) / 0.07 = $27,632.90; total ≈ $47,304.41. Verify: you contributed $30,000 of principal ($10k + $20k) and earned roughly $17,300 in growth. Example 2 — $0 start, $6,000 a year at 6% for 30 years (a retirement plan). Enter 0, 6, 30, 6000. FV = 6000 × (1.06^30 − 1) / 0.06 ≈ $474,349. Verify: total contributions are only $180,000, so compounding more than doubles the pot over three decades — a clear illustration of starting early.
Frequently asked questions
What is the difference between present value and future value?
Present value (PV) is what a future sum is worth today, while future value (FV) is what a present sum will be worth later — they are two sides of the same compounding equation. FV grows a number forward in time by multiplying by (1 + r)^n; PV discounts a number backward by dividing by the same factor. You use FV to project how savings will grow and PV to decide what a future payout is worth now. Confusing the two leads to large errors, especially over long horizons. If you ever need to reverse this calculator, a present-value tool does exactly the opposite operation.
Does this assume contributions are made monthly or annually?
This calculator treats contributions as a single payment at the end of each year (an ordinary annuity). Real-world investors who contribute monthly will end up with slightly more, because each monthly deposit has extra months to compound. The difference is modest but grows over long horizons — often a few percent of the final balance. If you contribute monthly, you can approximate by using a monthly rate (annual rate ÷ 12) and the number of months, or use a dedicated monthly-contribution tool. Treat the annual model as a clean, slightly conservative estimate.
Why does a small change in the return rate matter so much?
Because compounding is exponential, not linear: the (1 + r)^n term magnifies rate differences dramatically as n grows. Over 30 years, the difference between a 6% and an 8% return can nearly double the final balance, even though the rates look close. This is also why fees that shave even 1% off returns are so costly over a lifetime of investing. The lesson is that both the rate and the time horizon are powerful levers — starting earlier or earning a slightly higher return compounds into outsized results. Always run a few rate scenarios rather than trusting a single optimistic figure.
When should I NOT rely on a future value calculator?
Avoid treating it as a guarantee — it assumes a single constant return every year, but real markets are volatile and the order of good and bad years (sequence-of-returns risk) affects outcomes, especially once you start withdrawing. It also ignores inflation by default, so a large nominal future value may buy much less than it appears; subtract expected inflation to see real purchasing power. Do not use it for variable contributions, irregular timing, or accounts with changing tax treatment without adjusting the inputs. For retirement-withdrawal planning specifically, a tool that models drawdowns and inflation is more appropriate. Use this for forward growth projections, not spend-down analysis.
How do I adjust the future value for inflation?
Either discount the final figure or use a real rate of return. The simplest approach is to enter an inflation-adjusted (real) return — roughly your nominal expected return minus expected inflation — so the output is already in today's dollars. Alternatively, run the calculator normally to get the nominal future value, then divide by (1 + inflation)^n to convert it to real terms. For example, $474,000 in 30 years at 2.5% inflation is worth about $226,000 in today's money. Skipping this step is the most common mistake people make when interpreting long-range projections, because it makes the future look far richer than it really is.