How to use the future value calculator
Enter the number of periods, the starting amount, the interest rate per period and the deposit you add each period, and choose whether the deposits are made at the beginning or the end of each period. The calculator shows the future value, the total deposits and interest, the present value of the result, a growth graph and a period-by-period schedule you can export as CSV or PDF. The results update as you type.
What is future value?
Future value (FV) is what money invested today, plus any regular deposits, will be worth after a number of periods at a given interest rate. Each period the balance earns interest, and that interest earns interest too, so the balance grows faster over time. This is compound interest, and the future value shows its result in dollars.
Future value formula
FV = PV × (1 + i)n + PMT × ((1 + i)n − 1) ÷ i
- PV is the starting amount;
- PMT is the deposit per period;
- i is the interest rate per period;
- n is the number of periods.
When deposits are made at the beginning of each period, the deposit part is multiplied by (1 + i), because each deposit earns one more period of interest.
Future value example
$1,000 at 6% with $100 added at the end of each year grows to $3,108.93 in 10 years: $1,000 of starting money, $1,000 of deposits and $1,108.93 of interest. With the deposits made at the beginning of each year it grows to $3,188.01. These are the calculator's default inputs.
The present value of that future amount at the same rate is $1,736.01: the single sum you would need to invest today instead of the starting amount and all the deposits. The present value calculator does this in reverse for any future amount.
Future value of a lump sum
Without deposits the formula is simply FV = PV × (1 + i)n. $10,000 left to grow at 7% a year:
| After | Future value |
|---|---|
| 10 years | $19,671.51 |
| 20 years | $38,696.84 |
| 30 years | $76,122.55 |
The money roughly doubles every 10 years, so the last 10 years add more than the first 20 together. Time is the strongest part of the formula.
The rule of 72
To estimate how long it takes money to double, divide 72 by the yearly rate: at 6% that is 72 ÷ 6 = 12 years. The exact answer from the formula is 11.9 years, so the rule is a good shortcut for rates between about 4% and 12%.
What makes the future value bigger
- A higher interest rate: the effect grows with every period.
- More time: compounding works best over many periods.
- Larger or earlier deposits: money added sooner earns interest longer.
- Lower fees and taxes: every percent taken out each year compounds against you in the same way.
Future value and inflation
The future value is in future dollars. To see what it buys in today's money, divide it by (1 + inflation)n: with 3% inflation, the $3,108.93 from the example is worth about $2,313 in today's dollars. The inflation calculator shows how prices have changed in the past.
How to calculate future value in Excel
Use =FV(rate, nper, pmt, [pv], [type]). Money you put in is entered as a negative number, so the example is =FV(6%, 10, -100, -1000), which returns $3,108.93. Set type to 1 for deposits at the beginning of each period.
For monthly deposits with a yearly rate and compounding options, use the compound interest calculator or the savings calculator. To solve for the deposit, the rate or the time to reach a goal, use the investment calculator or the finance calculator.