Future Value (FV) Calculator

Try Example Scenario:

Current investment value or starting amount
Regular contribution amount (optional)
Expected annual return rate
Investment duration in years

What is Future Value?

Future Value (FV) is the value of a current asset at a future date based on an assumed rate of growth. It helps you understand how much your current investment will be worth in the future.

How to Use This Calculator

  • Step 1: Enter your initial investment amount (Present Value)
  • Step 2: Optionally add regular contributions
  • Step 3: Set the expected annual interest rate
  • Step 4: Choose compounding frequency
  • Step 5: Enter the time period in years
  • Step 6: Click "Calculate Future Value"

FV Formula

For Lump Sum: FV = PV × (1 + r)ⁿ

For Regular Contributions: FV = PMT × [((1 + r)ⁿ - 1) / r] × (1 + r×type)

Where: PV = Present Value, PMT = Payment per period, r = Interest rate per period, n = Number of periods, type = 0 (end) or 1 (beginning)

Key Concepts

  • Compound Interest: Interest calculated on the initial principal and accumulated interest
  • Present Value: The current worth of a future sum of money
  • Time Value of Money: Money available today is worth more than the same amount in the future
  • Annual Return: The percentage gain or loss on an investment over a year

Common Uses

  • Retirement: Planning and savings goals
  • Education: Fund projections
  • Investments: Portfolio growth estimates
  • Savings: Account projections
  • Planning: Long-term financial planning

Frequently Asked Questions (FAQ)

What is Future Value (FV)? ▼

Future Value is the value of a current asset at a specified date in the future based on an assumed rate of growth. It tells you how much your investment will be worth down the road.

Compound Interest vs Simple Interest? ▼

Simple interest is calculated only on the principal amount. Compound interest is calculated on the principal plus any accumulated interest. Compound interest allows your money to grow much faster over time.

Why is Future Value important? ▼

It helps you plan for long-term goals. By knowing the future value of your investments, you can determine if you are saving enough today to meet your financial needs in retirement, for a house down payment, or for a child's education.