Future Value Calculator

Calculate the future value of your investments with compound interest. Supports lump sum investments, annuities, and different compounding frequencies with detailed visualizations.

Investment Parameters

Enter your investment details to calculate future value

Basic Parameters

Regular Payments (Optional)

Understanding Future Value

Learn the fundamental concepts behind future value calculations and how compound interest can grow your investments

What is Future Value?

Future Value (FV) represents what your current money will be worth at a specific point in the future, considering compound interest and regular contributions.

It demonstrates the time value of money - the principle that money available today is worth more than the same amount in the future due to its potential earning capacity.

The Formula

Lump Sum:

FV = PV(1 + i)^n

Ordinary Annuity:

FV = PMT × [((1 + i)^n - 1) / i]
Where: PV = Present Value, i = Period Interest Rate, n = Number of Periods, PMT = Payment Amount

Key Factors

  • Time: Longer investment periods allow more compound growth
  • Interest Rate: Higher rates accelerate growth exponentially
  • Compounding: More frequent compounding increases returns
  • Regular Payments: Consistent contributions boost final value

Example: Lump Sum Investment

Scenario:

You invest $15,000 today at 5.25% annual interest, compounded monthly, for 10 years.

Calculation:

FV = $15,000 × (1 + 0.0525/12)^(10×12)
FV = $15,000 × (1.004375)^120
FV = $15,000 × 1.6819
FV = $25,228

Your investment grows by $10,228 (68.2%) over 10 years!

Example: Regular Savings

Scenario:

You save $500 every month at 4% annual interest, compounded monthly, for 5 years.

Calculation:

FV = $500 × [((1 + 0.04/12)^60 - 1) / (0.04/12)]
FV = $500 × [((1.003333)^60 - 1) / 0.003333]
FV = $500 × 66.295
FV = $33,148

You contribute $30,000 and earn $3,148 in interest!

Real-World Applications

Personal Finance

  • • Retirement planning and 401(k) projections
  • • College savings fund calculations
  • • Emergency fund growth planning
  • • Investment portfolio projections

Business Applications

  • • Capital budgeting decisions
  • • Investment project evaluation
  • • Loan repayment scenarios
  • • Financial planning and forecasting
Future Value Calculator - FV Calculator with Compound Interest