Future Value Calculator
Project what a lump sum grows to over time.
Results update as you type.
How it works
Future value is what a sum of money you have today will be worth at a point in the future, once it has grown at a given interest rate. It matters because it puts a concrete number on the core idea of the time value of money: a dollar invested now becomes more than a dollar later, and the future value tells you exactly how much more. This future value calculator takes your present sum, applies your annual rate divided across the compounding periods, and raises it over the total number of periods to project the ending balance, then shows the interest earned as the difference. Accounting for compounding frequency matters because interest that compounds monthly grows faster than the same rate compounded annually, since each period's interest starts earning interest itself. Investors and savers use future value to project the worth of a deposit, a CD or a lump-sum investment, to compare accounts with different rates and compounding schedules, and to understand why starting early is so powerful — time is the most influential input in the formula. The projection assumes a single upfront deposit with no further contributions and a constant rate, so it is cleanest for a one-time investment; add regular deposits and you would need an annuity calculation instead. It is a nominal figure before inflation and tax, so treat it as a planning estimate of growth rather than guaranteed spending power.
FV = PV × (1 + r ÷ n)^(n × t), r = annual rate, n = compounds per year, t = years
PV is your present sum and r is the annual rate as a decimal. Dividing r by n gives the interest applied in each compounding period, and there are n × t such periods over t years. Raising (1 + r ÷ n) to that number of periods compounds the deposit repeatedly, with each period's gain added to the base before the next is calculated. Multiplying by the present value scales it to your actual amount; subtracting the present value isolates the interest earned. More frequent compounding raises the exponent and the result.
Source:Compound interest formula
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter present value, annual interest rate and number of years.
- 2
Adjust the options
Adjust compounds per year if they apply — sensible defaults are already set.
- 3
Read your result
Future value updates instantly as you type — no button to press.
Frequently asked questions
What is the time value of money?
It is the principle that a sum of money is worth more now than the same sum in the future, because money you hold today can be invested to earn a return. Future value is the direct expression of this idea: it quantifies how much a present amount grows to over time. The concept underpins nearly all of finance, from savings and loans to bond pricing and business investment decisions, because it lets you compare cash flows that occur at different points in time on equal footing.
How does compounding frequency change the result?
The more often interest compounds, the larger the future value, because each compounding event lets already-earned interest start earning interest sooner. At the same nominal rate, monthly compounding beats annual, and daily beats monthly, though the gains shrink as frequency rises. The difference is meaningful over long horizons or large sums. Enter the frequency your account actually uses — many savings accounts compound daily or monthly — so the projection matches how your balance really grows.
Does this include regular contributions?
No. This calculator projects the growth of a single lump sum deposited today with no further additions. If you plan to add money regularly — say a fixed amount each month — the ending balance would be higher, and you would need a future-value-of-an-annuity calculation that layers those deposits on top. Use this tool for one-time investments like a CD or a lump sum, and a savings or retirement calculator when you are contributing on an ongoing basis.
Is the future value adjusted for inflation?
No, it is a nominal figure stated in future dollars, not adjusted for rising prices. Because inflation erodes purchasing power, the real value of the result will buy less than the same number of dollars today. At 3% inflation, money loses roughly half its purchasing power over about 24 years. To gauge real growth, subtract your expected inflation rate from the return you enter, which gives a rough inflation-adjusted future value in today's terms.
What interest rate should I enter?
Enter the annual rate you realistically expect the money to earn. For a savings account or CD, use the quoted APY. For an investment, use a conservative long-run estimate for the asset mix you hold — historically higher for stocks, lower for bonds. Because the result is highly sensitive to the rate over long periods, it is wise to test a range of rates rather than a single optimistic figure, so you understand the spread of possible outcomes.