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Business finance / Future Value Calculator

Future Value Calculator

What money saved today, plus regular payments, will be worth in the future at a given interest rate.

También en español: Calculadora de interés compuesto →

$

Enter a number of at least 0

The lump sum you start with (present value).

$

Enter a number of at least 0

A regular amount you add. Use 0 for a lump sum only.

%

Enter a number from 0 to 100%

Enter a number from 0 to 100

Future value
$44,729.83
$9,729.83interest earned
$35,000.00total put in
5periods
$0future value $44,729.83
  • Deposits
  • Interest
Amount today$25,000.00
Future value of the amount today · $25,000.00 × 1.0600^5$33,455.64
Payments: 5 × $2,000.00$10,000.00
Future value of the payments · paid at the end of each period$11,274.19
Future value$44,729.83

At 6.00% a year compounded each year, every dollar today grows to $1.34 after 5 years.

See breakdown

How the future value calculation works

  1. A lump sum grows by FV = PV × (1 + i)^n

    i is the rate per period and n the number of periods. $25,000 at 6% for 5 years becomes $25,000 × 1.06^5 = $33,455.64.

  2. Regular payments grow by PMT × ((1 + i)^n − 1) ÷ i

    This is the future value of an ordinary annuity. $2,000 a year at 6% for 5 years adds up to $11,274.19.

  3. Payments at the start of a period earn one extra period

    For an annuity due, multiply the payment part by (1 + i). Paying at the start of each year turns $11,274.19 into $11,950.64.

  4. Interest is the future value minus what you put in

    The split bar shows how much of the total is your own money and how much is growth.

Worked example. A shop owner saving for a $40,000 equipment upgrade has $25,000 today and adds $2,000 at the end of each year at 6%. In 5 years the fund is worth $44,729.83: $35,000 put in and $9,729.83 of interest.

Future Value FAQ

What is the future value formula?

FV = PV × (1 + i)^n + PMT × ((1 + i)^n − 1) ÷ i, where i is the rate per period and n the number of periods. Drop the PMT part for a single lump sum.

How do I calculate the future value of an annuity?

Use FV = PMT × ((1 + i)^n − 1) ÷ i for payments at the end of each period. For payments at the start (an annuity due), multiply the result by (1 + i).

What is the difference between future value and present value?

Future value moves money forward in time by adding interest. Present value moves a future amount back to today by discounting it. They use the same formula turned around.

Does inflation affect future value?

This calculator shows the dollar amount, not its buying power. To estimate buying power, use a rate that is your expected return minus expected inflation.

How do I calculate future value in Excel?

Use =FV(rate, nper, pmt, pv, type), entering pmt and pv as negative numbers. =FV(6%, 5, -2000, -25000, 0) returns $44,729.83.

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