Use our Future Value Calculator to estimate how much your savings or investments could grow over time with compound interest and optional periodic contributions. Whether you are planning retirement, building an emergency fund, or saving for a big purchase, understanding future value empowers smarter financial decisions.
What is Future Value?
Future value (FV) is the projected worth of a current amount of money at a specified date in the future, based on a given interest rate and compounding schedule. It answers a simple question: if I start with a certain amount today and possibly add regular contributions, how much could I have later?
Compounding is the engine behind growth. When interest is compounded, you earn interest on your principal and on previously earned interest. The frequency of compounding (annually, quarterly, monthly, weekly, or daily) affects how quickly your balance can grow, especially over long periods or at higher rates.
How to Use the Future Value Calculator
- Enter your starting balance as the Present Value (use 0 if you are starting from scratch).
- Fill in your Periodic Contribution if you plan to deposit regularly; otherwise, leave it at 0.
- Provide the Annual Interest Rate (APR) as a percentage, like 6 for 6%.
- Select how many Years you plan to invest or save (decimals allowed).
- Choose a Compounding Frequency (for example, monthly or daily).
- Set your Contribution Frequency to match how often you’ll deposit (monthly, weekly, etc.).
- Pick the Contribution Timing: at the end of each period (ordinary annuity) or at the beginning (annuity due).
- Optionally set a Currency Symbol and the number of Decimal Places to display.
Click “Calculate Future Value” to see your projected balance, total contributions, and total interest earned. Adjust inputs to explore what-if scenarios and find the right path to your goal.
Formula and Methodology
At its core, future value with compound interest is often summarized by FV = PV × (1 + r/m)^(m × t), where PV is the present value, r is the annual rate, m is the compounding frequency, and t is time in years. When you add periodic contributions, you’re effectively stacking an annuity on top of that single sum. If you deposit at the end of each period, it’s an ordinary annuity; if you deposit at the beginning, it’s an annuity due, which earns one extra period of interest on each payment.
Our Future Value Calculator supports different compounding and contribution frequencies. That means you can model real-world behavior like a paycheck contribution every two weeks with monthly compounding on a savings account. The calculator accounts for timing (beginning vs. end of period), which can make a noticeable difference over long horizons.
Why Contribution Timing Matters
- End of period (ordinary annuity): Each contribution begins compounding after it is made.
- Beginning of period (annuity due): Each contribution immediately begins compounding, typically resulting in a higher future value.
Common Use Cases
- Retirement planning: Estimate future nest egg size based on steady contributions and a long-term return assumption.
- Education savings: Model 10–18 years of contributions for a college fund.
- Emergency fund: Forecast how quickly you’ll reach a target balance with small, regular deposits.
- Big purchases: Plan for a down payment by projecting savings growth over a defined timeline.
Pro Tips for Better Estimates
- Be conservative with your interest rate to create a margin of safety.
- Use realistic contribution amounts tied to your budget.
- Experiment with compounding and contribution frequency to see the impact of small changes.
- Consider contribution timing: switching from end to beginning of the period can boost results.
- Review results periodically and update inputs as your situation evolves.
Limitations and Assumptions
This calculator assumes a constant nominal annual rate and evenly spaced contributions. Real markets fluctuate, and actual bank products may have fees, minimums, or rate changes over time. Treat results as estimates to guide planning, not guarantees.
Take the Next Step
Run multiple scenarios by adjusting your contributions, extending your time horizon, or increasing your savings rate after a raise. Small, consistent improvements can produce outsized results thanks to compound growth. The Future Value Calculator makes it easy to visualize those outcomes and stay motivated on your financial journey.