Future Value Calculator
Calculate what your investment will be worth in the future
See how compound interest and regular contributions grow your wealth over time. Plan your financial goals with confidence.
Calculation Inputs
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Results
Future Value
$300,850.72
Value after 20 years at 7% annual return
Total Contributions
$130,000.00
Interest Earned
$170,850.72
Return on Investment (ROI)
131.42%
Total return: $170,850.72 on $130,000.00 invested
Calculation Details
Initial investment: $10,000
Regular contribution: $500 monthly
Annual interest rate: 7%
Compounding: Monthly
Time period: 20 years
Formula Used
P = Principal (initial investment)
r = Annual interest rate
n = Compounding frequency per year
t = Time in years
PMT = Regular contribution amount
Growth Over Time
Total Contributions: Your initial investment plus all regular contributions
Interest Earned: Growth from compound interest on your investments
What This Means
If you invest $10,000 today and add $500 monthly, your investment will grow to $300,850.72 in 20 years at 7% annual return.
Out of the final value, $130,000.00 comes from your contributions, while $170,850.72 is earned through compound interest. That's a 131.42% return on your investment!
Key Insight: The power of compound interest means your money earns returns on both your original investment and on the interest already earned. Regular contributions amplify this effect, accelerating your wealth growth over time.
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100% Client-Side Calculations: All calculations are performed locally in your browser. We do not collect, store, or transmit any of your financial data to our servers. Your information stays completely private and secure on your device. This calculator works offline once loaded.
Important Disclaimer
Not Financial Advice: This calculator provides estimates for educational and informational purposes only.
- Results are based on the information you provide
- Actual results may vary based on individual circumstances
- Consult a qualified professional before making financial decisions
Calculation History
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Understanding Future Value
What is Future Value?
Future Value (FV) is the value of an investment at a specific date in the future, based on an assumed rate of return and regular contributions.
It demonstrates the time value of money principle: money available today can grow through investment returns, making it worth more in the future.
FV calculations are essential for retirement planning, college savings, investment goal setting, and understanding long-term wealth accumulation.
The companion to Future Value is Present Value, which calculates what future money is worth today. Together, they form the foundation of financial planning.
The Power of Compound Growth
Compound interest means earning returns on your returns. Your investment grows exponentially, not linearly.
Time is your greatest asset: Starting early dramatically increases your final value, even with smaller contributions.
Regular contributions matter: Adding even modest amounts regularly can significantly boost your future wealth through dollar-cost averaging.
Compounding frequency: More frequent compounding (daily vs. annually) slightly increases your returns, especially over long periods.
Real-World Use Cases
- Retirement Planning: Calculate how much your 401(k) or IRA will be worth at retirement
- College Savings (529 Plans): Project the growth of education savings accounts
- Investment Goal Setting: Determine if your savings plan will reach your target amount
- Savings Account Projections: See how your emergency fund or savings will grow
- Comparing Investment Options: Evaluate different return scenarios and contribution strategies
- Financial Independence: Plan your path to financial freedom with long-term projections
Why Future Value Matters
Visualize Your Goals
See exactly what your savings will become, making abstract goals concrete and achievable.
Motivate Regular Saving
Understanding compound growth motivates consistent contributions and long-term thinking.
Compare Strategies
Test different contribution amounts, frequencies, and timeframes to optimize your plan.
Start Early Advantage
Quantify the massive benefit of starting to invest early, even with smaller amounts.
Frequently Asked Questions
What is the difference between future value and present value?
Future Value (FV) calculates what a current investment will be worth in the future, while Present Value (PV) calculates what a future amount is worth today. FV compounds money forward in time, while PV discounts money back to today's value. Use FV for planning savings and investment goals, and PV for evaluating future payments or lump sums.
How do regular contributions affect my future value?
Regular contributions dramatically increase your future value through dollar-cost averaging and compound growth. Even modest monthly contributions can double or triple your final amount compared to a one-time investment. The key is consistency - regular contributions benefit from compounding throughout the entire investment period.
What's a realistic annual return rate to use?
Historical averages: Stock market (S&P 500) averages 10% annually, balanced portfolios 6-8%, bonds 4-6%, and savings accounts 1-3%. However, past performance doesn't guarantee future results. Conservative planning uses 5-7% for diversified portfolios. Higher rates increase projected values but also increase risk. Always consider your risk tolerance and investment timeline.
Why does compounding frequency matter?
More frequent compounding means interest is calculated and added to your principal more often, generating slightly higher returns. Daily compounding produces higher future values than annual compounding at the same stated rate. The difference is most noticeable with higher interest rates and longer time periods. Most investment accounts compound daily or monthly.
How can I reach my investment goals faster?
Four key strategies: (1) Start investing as early as possible to maximize compounding time, (2) Increase your regular contribution amounts, (3) Contribute more frequently (monthly beats annual), and (4) Seek higher returns through appropriate investment choices (considering your risk tolerance). Even small increases in contributions or returns compound to significant differences over time.
Does this calculator account for inflation and taxes?
This calculator shows nominal (pre-tax, pre-inflation) future value. For real purchasing power, subtract inflation (typically 2-3% annually). For after-tax projections, consider your tax situation: retirement accounts (401k, IRA) grow tax-deferred, while taxable accounts incur annual capital gains taxes. Use a lower return rate to approximate after-tax, after-inflation "real" returns.
Partner Spotlight
Charting long-term growth goals? Explore RetireWise for budgeting and retirement calculators that keep your contributions on target.