The future value calculator can be used to calculate the future value (FV) of an investment with given inputs of compounding periods (N), interest/yield rate (I/Y), starting amount, and periodic deposit/annuity payment per period (PMT).
• Starting Principal + Recurring Deposits: Computes compound growth from both an initial lump sum (PV start) and recurring periodic deposits (PMT).
• Timing Choice: Select whether contributions occur at the beginning of each period (Annuity Due) or at the end of each period (Ordinary Annuity).
$3,108.93
| Period | Start balance ($) | Deposit ($) | Interest ($) | End balance ($) |
|---|---|---|---|---|
| Period 1 | $1,000.00 | $100.00 | $60.00 | $1,160.00 |
| Period 2 | $1,160.00 | $100.00 | $69.60 | $1,329.60 |
| Period 3 | $1,329.60 | $100.00 | $79.78 | $1,509.38 |
| Period 4 | $1,509.38 | $100.00 | $90.56 | $1,699.94 |
| Period 5 | $1,699.94 | $100.00 | $102.00 | $1,901.93 |
| Period 6 | $1,901.93 | $100.00 | $114.12 | $2,116.05 |
| Period 7 | $2,116.05 | $100.00 | $126.96 | $2,343.01 |
| Period 8 | $2,343.01 | $100.00 | $140.58 | $2,583.59 |
| Period 9 | $2,583.59 | $100.00 | $155.02 | $2,838.61 |
| Period 10 | $2,838.61 | $100.00 | $170.32 | $3,108.93 |
Future Value (FV) represents the amount of money to which an investment or cash flow will grow over a specified time horizon when compounded at a given periodic interest or yield rate.
When you invest an initial lump sum without making further deposits, the principal earns interest, and subsequent interest is computed on the new higher balance:
As periods increase, exponential compounding drives non-linear asset acceleration.
When you deposit money on a recurring periodic schedule (e.g., monthly 401(k) or IRA additions), each deposit compounds for the remaining time periods:
Setting B = 0 calculates payments made at the end of each period; setting B = 1 applies Annuity Due compounding.
Combining both components provides the total portfolio value at maturity:
Discounting the future sum back to period zero yields the equivalent lump-sum Present Value (PV total).
Project long-term compound investment growth with ongoing periodic deposits.
Determine what a future lump sum or cash flow stream is worth in today's dollars.
Compare compounding schedules from annual to daily and continuous.
Measure the percentage return on investment and annualized capital gain.