About the Future Value Calculator
This future value calculator answers the classic time-value-of-money question: if I invest a sum today and keep adding a fixed payment every period, what will it all be worth at the end? Enter the present value, the periodic payment, the annual interest rate, the number of years and how many periods fall in a year, then choose whether payments are made at the beginning or end of each period.
It reproduces the FV function in Excel and financial calculators, which makes it useful for finance students checking homework, savers projecting a sinking fund, and anyone comparing an ordinary annuity with an annuity due. The results separate the growth of the lump sum from the growth of the payment stream so you can see where the money comes from.
The rate is treated as a nominal annual rate divided evenly across periods, and payments are assumed to be made every period at the same frequency interest is credited. Use the compound interest calculator if your deposit frequency differs from the compounding frequency.
With the default inputs, the future value is $50,969.84. Change any value above to recalculate instantly.
How to use the future value calculator
- 1Enter the amount you are starting with (present value).
- 2Enter the payment you will add every period, or 0 for a lump sum only.
- 3Enter the annual rate, the number of years and the periods per year.
- 4Choose whether payments are made at the beginning or end of each period.
- 5Read the future value and the split between the lump sum and payments.
Formula and method
The periodic rate i is the annual rate divided by the number of periods per year, and N is the total number of periods (years × periods per year). The first term compounds the starting amount forward N periods. The second term is the future value of an annuity — the sum of every payment grown from the date it is made to the end.
For an annuity due (payments at the start of each period) T = 1, so the annuity value is multiplied by (1 + i) because each payment earns one extra period of interest. For an ordinary annuity T = 0. When the rate is zero the future value is simply PV + PMT × N.
- FV
- Future value
- PV
- Present value (starting amount)
- PMT
- Payment made each period
- i
- Interest rate per period (annual rate ÷ periods per year)
- N
- Total number of periods
- T
- 1 if payments are at the beginning of each period, 0 if at the end
Worked examples
$10,000 plus $200/month at 6% for 10 years
The $10,000 compounds at 0.5% a month for 120 months to $18,193.97. The 120 payments of $200 grow to $32,775.87. Together that is $50,969.84, of which $16,969.84 is interest on your $34,000.
Annuity due: $6,000 a year at 8% for 25 years
Investing $6,000 at the start of each year (like an IRA contribution made every January) for 25 years at 8% gives $473,726 — more than three times the $150,000 contributed, because each deposit gets a full extra year of growth.
Lump sum: $50,000 at 4% compounded quarterly for 15 years
With no payments, FV = 50,000 × 1.01^60 = $90,834.83. Quarterly compounding at 4% nearly doubles the money over 15 years.
Frequently asked questions
What is future value?+
Future value is what an amount of money invested today — plus any regular payments — will be worth at a future date, given a rate of return. It is the foundation of savings goals, retirement projections and loan maths.
What is the difference between an ordinary annuity and an annuity due?+
In an ordinary annuity payments are made at the end of each period; in an annuity due they are made at the beginning. An annuity due always has a higher future value because every payment earns one more period of interest.
How do I calculate future value in Excel?+
Use =FV(rate, nper, pmt, pv, type), entering the payment and present value as negative numbers (cash out). For this page’s default: =FV(6%/12, 120, -200, -10000, 0) returns 50,969.84.
What rate should I use for future value?+
Use the rate the money will actually earn: an account APY converted to a nominal rate, a bond yield, or a conservative long-run investment return. To see results in today’s dollars, subtract expected inflation from the rate.
How is future value different from present value?+
They are mirror images. Future value compounds money forward to a later date; present value discounts a future amount back to today using the same rate. The present value calculator does the reverse of this page.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.