Future Value Calculator

Calculate the future value of a lump sum investment and regular periodic payments. Understand how your money grows through the time value of money.

Future Value Inputs

$

One-time initial investment

$

Payment made each period

%

Enter your values and click "Calculate" to see the future value projection.

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Pro Tip

The future value calculation assumes a constant rate of return. In reality, investment returns vary year to year. Use conservative estimates for more reliable projections.

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Understanding Future Value

Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. It is a fundamental concept in finance that helps investors and planners understand what their money will be worth in the future.

The future value of a lump sum shows how a single investment grows over time with compound interest. The future value of an annuity shows the accumulated value of a series of regular payments, each earning compound interest from the time it is invested.

Combining both a lump sum and regular payments maximizes growth potential. The lump sum benefits from compounding for the full period, while each payment compounds for a decreasing amount of time. Together they create a powerful wealth-building strategy.

Future Value Formulas

FV = PV(1+r)n + PMT × [(1+r)n − 1] / r

Where:

FV = Future value (total)

PV = Present value (lump sum)

r = Interest rate per period

n = Number of periods

PMT = Payment per period (annuity)

Example

$10,000 lump sum + $200/period at 6% for 10 periods:

  • • FV of lump sum: $10,000 x (1.06)^10 = $17,908
  • • FV of annuity: $200 x [(1.06)^10 - 1] / 0.06 = $2,636
  • • Combined future value: $20,544
  • • Total invested: $10,000 + $2,000 = $12,000
  • • Total interest earned: $8,544

Frequently Asked Questions

What is the difference between future value and present value?
Future value calculates what a sum of money today will be worth in the future, while present value calculates what a future sum of money is worth today. They are inverse calculations using the same time value of money principles.
Should I use annual or monthly periods?
Use the period that matches your payment frequency and interest compounding. If you make monthly payments and interest compounds monthly, use monthly periods with the monthly interest rate (annual rate divided by 12).
What is an annuity?
An annuity is a series of equal payments made at regular intervals. An ordinary annuity has payments at the end of each period, while an annuity due has payments at the beginning. This calculator assumes ordinary annuity (end-of-period payments).
How does the interest rate affect future value?
Higher interest rates dramatically increase future value, especially over long periods. The relationship is exponential: doubling the rate more than doubles the final value due to compound growth effects.