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Future Value Calculator

Calculate what your money today will be worth in the future.

Inputs

$
6.0%
020
3.0%
015
10 years
150

Results

Future Value
$17,908.48
79.1% total growth
Real Value (Inflation-Adjusted)
$13,325.59
In today's dollars — real growth: 33.3%
⚠
Inflation impact: At 3% annual inflation, $17,908.48 in 10 years will have the buying power of only $13,325.59 today.
Interest Earned
$7,908.48

Disclaimer: This calculator provides estimates for informational purposes only. Results are not financial advice. Consult a qualified financial advisor for decisions about your specific situation. Actual rates, terms, and conditions may vary by lender and individual circumstances.

How Does the Future Value Calculator Work?

The future value calculator projects how much a sum of money will grow over time at a given interest rate using the compound growth formula. It demonstrates the time value of money, one of the most fundamental concepts in finance. A dollar today is worth more than a dollar in the future because of its earning potential. The calculation accounts for the principal amount, the interest rate, and the number of compounding periods to show how your money grows exponentially rather than linearly. When you add regular contributions, the effect is amplified because each contribution also begins compounding immediately. This calculator is essential for comparing different savings scenarios, evaluating investment opportunities, and understanding the true cost of delaying financial decisions.

Formula: FV = PV x (1 + r/n)^(nt) + PMT x [((1 + r/n)^(nt) - 1) / (r/n)]

How to Use This Calculator

Enter your starting amount (present value), the expected annual interest rate, and the number of years. The calculator shows what your money will be worth at the end of that period. For more realistic projections, you can add monthly contributions and adjust the compounding frequency. Try comparing scenarios side by side: for instance, see the difference between starting with $5,000 versus $10,000, or between saving for 10 years versus 20 years. The exponential nature of compound growth means even small differences in rate or time create enormous differences in the final result.

Example Calculation

James invests $10,000 in an index fund averaging 8% annual return, compounded monthly, and adds $200 per month for 20 years.

  1. 1Present value (PV) = $10,000
  2. 2Monthly interest rate = 8% / 12 = 0.667%
  3. 3Number of months = 20 x 12 = 240
  4. 4Future value of initial investment: $10,000 x (1.00667)^240 = $49,268
  5. 5Future value of monthly contributions: $200 x [((1.00667)^240 - 1) / 0.00667] = $117,804
  6. 6Total future value = $49,268 + $117,804 = $167,072
Result: After 20 years, James will have approximately $167,072. He invested a total of $58,000 ($10,000 + $200 x 240 months), earning roughly $109,072 in compound interest — nearly twice his total contributions.

Understanding Your Results

The future value figure shows the nominal value of your investment at the end of the period. Compare this to your total contributions to see how much came from compound growth versus your own deposits. The longer your time horizon and the higher the rate, the larger the gap between contributions and final value. Remember that this is a projection based on a constant rate; real investment returns fluctuate year to year. For conservative planning, use a rate 1-2% below historical averages. Also consider that inflation will reduce the real purchasing power of this future amount. If you project at 8% growth with 3% inflation, your real growth rate is approximately 5%.

Factors That Drive Future Value

Time Horizon

The single most powerful factor. Money compounding for 30 years grows dramatically more than money compounding for 15 years, even at the same rate.

Interest / Growth Rate

The difference between 6% and 8% annual return seems small, but over 30 years it can mean hundreds of thousands of dollars more.

Regular Contributions

Consistent monthly additions create a dollar-cost averaging effect and each new contribution immediately begins compounding.

Compounding Frequency

Daily compounding earns slightly more than annual, but the difference is minimal. Focus on rate and time rather than compounding frequency.

Tips & Best Practices

  • ✓Use this calculator to compare different savings scenarios side by side — the results can be surprising.
  • ✓The time value of money is the foundation of all financial planning. Understand it and you understand investing.
  • ✓Higher interest rates or longer time periods create exponential growth, not linear. This is why starting early matters so much.
  • ✓Always account for inflation when projecting future values. $1 million in 30 years will buy far less than $1 million today.
  • ✓Run scenarios at multiple rates (conservative, moderate, aggressive) to understand the range of possible outcomes.

Frequently Asked Questions

What is the time value of money?▾
The time value of money is the concept that money available now is worth more than the same amount in the future because of its potential earning capacity. Receiving $1,000 today is better than receiving $1,000 in five years because you can invest the $1,000 now and earn returns on it. This core principle underlies all of finance, from loan interest rates to stock valuations to retirement planning.
How is future value different from present value?▾
Future value calculates what a current sum will be worth later (projecting forward in time). Present value calculates what a future sum is worth today (discounting backward in time). They are inverse calculations using the same principle. If $10,000 today grows to $21,589 in 10 years at 8%, then the present value of $21,589 received in 10 years at 8% is $10,000.
What interest rate should I use for future value calculations?▾
Use a rate that reflects your actual investment. For a savings account, use the APY (currently around 4-5% for high-yield accounts). For stock market investments, the historical average is about 10% nominal (7% after inflation). For bonds, use 4-5%. For conservative financial planning, use a rate 1-2% below historical averages to build in a safety margin.
How does inflation affect future value?▾
Inflation reduces the purchasing power of future money. If your investment grows at 8% but inflation is 3%, your real return is approximately 5%. A future value of $500,000 in 25 years at 3% inflation has a real purchasing power of only about $239,000 in today's dollars. Always consider inflation-adjusted values for long-term financial planning.
Why does a small difference in rate make such a big impact over time?▾
Because of exponential compounding. At 6% for 30 years, $10,000 grows to $57,435. At 8%, it grows to $100,627 — nearly twice as much from just 2% more. This is because higher rates compound on an increasingly larger base each year. Over short periods the difference is small, but over decades it becomes enormous. This is why minimizing investment fees (which reduce your effective rate) is so important.
By CalcMaven Editorial TeamLast Updated: February 2026

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