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Future Value Calculator

The Future Value Calculator shows how much a single lump-sum investment will be worth after a set number of years, accounting for compound interest at any compounding frequency.

Future Value

$1647.01

Principal

$1,000.00

Interest Earned

$647.01

Total Growth

64.70%

Formula

PV × (1 + r/n)^(n×t)

How Future Value is Calculated

FV = PV × (1 + r / n)^(n × t)

  • PV = present value (your initial investment)
  • r = annual interest rate as a decimal
  • n = number of compounding periods per year
  • t = time in years

Quick answer

Future value (FV) is the worth of a present sum of money at a specified date in the future, assuming compound interest. Use the formula FV = PV × (1 + r/n)^(n×t), where PV is principal, r is annual interest rate, n is compounding periods per year, and t is time in years. For example, export const batch4Tools: ToolContent[] = ,000 invested at 5% annual interest compounded monthly for 10 years grows to export const batch4Tools: ToolContent[] = ,647.01. The more frequently interest compounds, the greater the future value due to interest-on-interest.

Formula & method

FV = PV × (1 + r / n)^(n × t)
  • FV — Future Value — the amount at the end of the investment period
  • PV — Present Value (principal) — the initial investment amount
  • r — Annual interest rate as a decimal (e.g., 5% = 0.05)
  • n — Number of compounding periods per year (e.g., 12 for monthly)
  • t — Time in years

Compound interest future value formula for a lump-sum investment

Examples

Example 1: export const batch4Tools: ToolContent[] = ,000 at 5% Monthly Compounding for 10 Years
Input
PV: 1000 | r: 5% | n: 12 (monthly) | t: 10 years
Result
FV = export const batch4Tools: ToolContent[] = ,647.01
Why
FV = 1000 × (1 + 0.05/12)^(12×10) = 1000 × (1.004167)^120 ≈ 1000 × 1.64701 = export const batch4Tools: ToolContent[] = ,647.01. Total interest earned: $647.01.
Example 2: $5,000 at 7% Annual Compounding for 20 Years
Input
PV: 5000 | r: 7% | n: 1 (annually) | t: 20 years
Result
FV = export const batch4Tools: ToolContent[] = 9,348.42
Why
FV = 5000 × (1 + 0.07/1)^(1×20) = 5000 × (1.07)^20 ≈ 5000 × 3.86968 = export const batch4Tools: ToolContent[] = 9,348.42. Total interest earned: export const batch4Tools: ToolContent[] = 4,348.42.
Example 3: export const batch4Tools: ToolContent[] = 0,000 at 3% Quarterly Compounding for 5 Years
Input
PV: 10000 | r: 3% | n: 4 (quarterly) | t: 5 years
Result
FV = export const batch4Tools: ToolContent[] = 1,611.84
Why
FV = 10000 × (1 + 0.03/4)^(4×5) = 10000 × (1.0075)^20 ≈ 10000 × 1.16118 = export const batch4Tools: ToolContent[] = 1,611.84. Total interest earned: export const batch4Tools: ToolContent[] = ,611.84.
Example 4: $2,500 at 8% Daily Compounding for 15 Years
Input
PV: 2500 | r: 8% | n: 365 (daily) | t: 15 years
Result
FV = $8,299.20
Why
FV = 2500 × (1 + 0.08/365)^(365×15) = 2500 × (1.000219)^5475 ≈ 2500 × 3.31968 = $8,299.20. Total interest earned: $5,799.20.

Frequently asked questions

What is future value?

Future value is the value of a current asset at a future date, based on an assumed rate of growth. It tells you how much a sum of money invested today will be worth after earning compound interest over time.

What is the difference between future value and present value?

Present value (PV) is what a future sum of money is worth today, discounted at a given rate. Future value (FV) is the opposite — it projects what today's amount will grow to. They are inverse calculations: FV = PV × (1 + r/n)^(nt) and PV = FV / (1 + r/n)^(nt).

How does compounding frequency affect future value?

More frequent compounding means interest is calculated and added to the principal more often, so you earn interest on interest sooner. Daily compounding produces a slightly higher future value than monthly, which is higher than annual compounding for the same nominal rate.

What is a good annual rate of return to use?

Historical US stock market returns have averaged roughly 7–10% annually before inflation. High-yield savings accounts currently offer 4–5%. CDs and bonds typically range 2–6%. For conservative estimates, use 4–5%; for long-term equity estimates, 7% is commonly used.

Does this calculator account for inflation?

No — this calculator shows the nominal future value without adjusting for inflation. To find the real future value, subtract the expected inflation rate from your interest rate before entering it. For example, if your rate is 7% and inflation is 3%, enter 4% for an inflation-adjusted estimate.

Can I use this calculator for retirement planning?

Yes. Enter your current savings as the present value, an expected average annual return, and the number of years until retirement. The result gives you a rough projection of that lump sum's growth. For contributions made regularly over time (not just a lump sum), you would also need an annuity future value calculation.

Sources & references

External references open in a new tab. We are independent and not affiliated with these organizations.

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  • ✓ Formula and method shown above
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Provided “as is” for general information only — results may be inaccurate, so verify before you rely on them. No warranty; use at your own risk.

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