Future Value Calculator
See what your money will be worth in the future. Enter a starting amount, an interest rate, and a time horizon to calculate the future value with compound interest. Add monthly contributions to see how regular investing accelerates growth.
Disclaimer: For estimation only
This calculator provides estimates for planning purposes. Actual results depend on factors specific to your situation. This is not financial advice. Consult a qualified financial advisor before making decisions based on these results.
Ordinary annuity: contributions are added after interest is calculated each period.
What is future value?
Future value is what a sum of money today will be worth at a specific point in the future, given a particular rate of return. It is the fundamental concept behind investing: you give up spending power today in exchange for more spending power later. The growth comes from compound interest, where your earnings generate their own earnings, creating a snowball effect over time.
The future value formula
FV = PV × (1 + r/n)nt
PV is your present value (starting amount), r is the annual interest rate expressed as a decimal, n is how many times per year interest compounds, and t is the number of years. When you make regular contributions, a second term is added to account for each payment growing at compound interest for its remaining time in the account.
Future value vs. present value
Future value and present value are two sides of the same coin. Future value asks “what will this be worth later?” while present value asks “what is a future amount worth today?” Investors use future value to set savings goals and project growth. They use present value to evaluate whether a future payout (like a pension or settlement) is worth waiting for compared to a lump sum today.
Why inflation matters
A dollar tomorrow buys less than a dollar today. At 3% inflation, prices roughly double every 24 years. That means $100,000 in 2050 will only buy about half of what $100,000 buys now. This calculator shows both the nominal future value (the actual dollar amount) and the inflation-adjusted value (what those dollars will actually buy). The gap between the two is why earning a return that beats inflation is so important.
Lump sum vs. regular contributions
A lump sum invested early benefits from the maximum compounding time. But most people do not have a large sum to invest all at once. Regular monthly contributions (dollar-cost averaging) build wealth steadily and reduce the risk of investing everything at a market peak. Use the “With contributions” mode to see how even modest monthly amounts add up when compounded over decades.
Frequently asked questions
What rate of return should I use?
For long-term stock market investments, 7% (after inflation) or 10% (before inflation) are common benchmarks based on historical S&P 500 returns. For savings accounts, use your actual APY (currently 4-5% for high-yield accounts in 2026). For conservative projections, use a lower rate. Running the calculation at multiple rates shows you the range of possible outcomes.
Does this calculator account for taxes?
No. This calculator shows pre-tax growth. In taxable accounts, capital gains taxes reduce your actual return. In tax-advantaged accounts like 401(k)s and IRAs, your money grows tax-deferred or tax-free, so the calculator's output is closer to your real result. If you are investing in a taxable account, consider reducing the rate by 1-2% to approximate after-tax returns.
How accurate is the inflation adjustment?
The calculator uses a fixed 3% annual inflation rate, which is the approximate long-term U.S. average. Actual inflation varies year to year. It is a useful rough guide for understanding purchasing power erosion, not a precise forecast.
What is the difference between ordinary annuity and annuity due?
An ordinary annuity adds contributions at the end of each period (after interest is calculated). An annuity due adds them at the beginning (before interest is calculated), so each contribution earns one extra period of interest. Most financial institutions default to ordinary annuity. The difference is small over short periods but adds up over decades.
Important disclaimer
This calculator provides estimates for educational purposes only. Actual investment returns vary and are not guaranteed. Past performance does not predict future results. This tool does not account for taxes, fees, or market volatility. Consult a qualified financial advisor before making investment decisions.
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