Future Value Calculator
Calculate the future value of an investment or savings account with compound interest. Include optional regular contributions to project growth over time.
Enter initial investment, interest rate, number of periods and compounding frequency to calculate future value, total interest earned and total contributions. Optionally include regular contributions.
Starting capital or present value
Return rate per annum
Investment horizon
How often interest compounds
Per period (optional)
Formula
FV = PV × (1 + r/m)^(n×m) + PMT × [((1 + r/m)^(n×m) − 1) / (r/m)] where FV = future value, PV = present value, r = rate, m = compounding periods, n = years, PMT = regular contribution
Future value shows what an investment will be worth after earning compound interest over time. The first part of the formula shows the growth of your initial investment. The second part (if you have regular contributions) shows the growth of those periodic additions. More frequent compounding leads to higher returns.
Worked Example
Initial investment $10,000 · Interest rate 7% · 10 years · Annual compounding · $500 annual contribution:
FV of initial: $10,000 × (1.07)^10 = $19,671.51
FV of contributions: $500 × [((1.07)^10 − 1) / 0.07] = $6,935.73
Total future value = $19,671.51 + $6,935.73 = $26,607.24
Total contributions = $10,000 + ($500 × 10) = $15,000
Total interest earned = $26,607.24 − $15,000 = $11,607.24
Your $10,000 initial investment plus $500 annual contributions grow to $26,607.24 after 10 years at 7% annual interest. The power of compound interest means you earn $11,607.24 in returns — more than 70% of your total contributions.
Frequently Asked Questions
Use this in your workflow
Use the Present Value Calculator to discount that future value back to today's dollars for investment comparison. For retirement planning, use the Savings Goal Calculator to work backwards from a target amount. Browse all Free Business Calculators.
Worked example: retirement savings fund
A useful starting point before entering your own figures above.
| Input / Output | Value |
|---|---|
| Initial savings (at age 35) | $50,000 |
| Expected annual return | 6% |
| Time horizon (years to 65) | 30 years |
| Compounding frequency | Monthly |
| Annual contribution | $5,000 |
| Projected fund at 65 | $680,436.79 |
| Total contributions over 30 years | $200,000 |
| Investment gains | $480,436.79 |
Interpretation: starting with $50,000 and contributing $5,000 annually for 30 years at 6% annual return, compounded monthly, grows to $680,436.79. Investment gains of $480,436.79 represent the power of compound interest and regular saving over decades.