Future Value Calculator - Estimate the Future Value of a Sum of Money
Future Value Calculator
($)
years
(%) per periods
($) each payment
Calculation Results
Future Value
Present Value
Total Interest
Total Deposit
Portfolio Breakdown
| # | Deposits | Interest | End balance |
|---|
| Period | Deposits | Interest | End balance |
|---|
Accumulation Growth Chart
How Does This Future Value Calculator Work?
This comprehensive future value calculator uses the time value of money formula to project how much your current investment and periodic contributions will grow over time. It accounts for:
- Present Value (PV): The initial lump sum you're investing today
- Number of Periods: The investment time horizon in years
- Interest Rate (I/Y): The expected annual rate of return
- Compounding Frequency: How often interest is calculated and added to your balance
- Payment Amount (PMT): Regular deposits made during the investment period
- Payment Frequency: How often you make deposits (monthly, quarterly, annually, etc.)
- Payment Growth: Annual percentage increase in your deposit amounts
- Payment Timing: Whether payments are made at the beginning (annuity due) or end (ordinary annuity) of each period
When to Use This Future Value Calculator
Example 1: Retirement Savings
Scenario: You're 30 years old and want to retire at 65 with a comfortable nest egg.
- Present Value: $10,000 (current retirement account balance)
- Number of Periods: 35 years (until retirement)
- Interest Rate: 7% annually (average stock market return)
- Monthly Payment: $500
- Payment Growth: 3% annually (to match salary increases)
- Compounding: Monthly
- Payment Timing: End of period (ordinary annuity)
Result: Your retirement account could grow to approximately $1,388,645 by age 65!
- Initial investment contribution: $10,000
- Total deposits over 35 years: ~$420,000
- Total interest earned: ~$970,000
Example 2: Education Savings (529 Plan)
Scenario: You have a newborn and want to save for their college education in 18 years.
- Present Value: $5,000 (gift from grandparents)
- Number of Periods: 18 years
- Interest Rate: 6% annually
- Monthly Payment: $300
- Payment Growth: 0% (fixed contribution)
- Compounding: Monthly
- Payment Timing: Beginning of period(Annuity due)
Result: You could have approximately $131,470 for college expenses!
Example 3: Lump Sum Investment
Scenario: You received a $50,000 inheritance and want to invest it for 20 years.
- Present Value: $50,000
- Number of Periods: 20 years
- Interest Rate: 8% annually
- Monthly Payment: $0 (no additional contributions)
- Compounding: Quarterly
Result: Your investment could grow to approximately $243,772 through compound interest alone!
References
Government and Official Resources
- Investor.gov - Save and Invest (U.S. SEC) - Official investor education from the Securities and Exchange Commission
- SEC - Mutual Funds and ETFs Guide - Understanding investment vehicles and their returns
- TreasuryDirect.gov - U.S. Treasury Securities - Information on Treasury bonds, notes, bills, and savings bonds
- IRS - Retirement Plans - Tax rules for 401(k)s, IRAs, and other retirement accounts
- CFPB - Retirement Planning Tools - Consumer Financial Protection Bureau resources
- FDIC Money Smart Program - Free financial education curriculum
- MyMoney.gov - Saving and Investing - Federal government's financial literacy website
- FINRA - Save and Invest - Financial Industry Regulatory Authority resources
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