Future Value Calculator

This calculator shows how money grows over time through compound interest. Choose the mode that fits your situation:

• Lump Sum: Enter a one-time amount you invest today and see how it grows. Select the compounding frequency: daily compounding (like a savings account) beats annual compounding by a small but real margin.
• Recurring Deposits: Model regular monthly contributions (like a 401k or IRA). Enter an optional starting balance, your monthly deposit, annual return rate, and time horizon. The growth table shows the balance year by year and illustrates how compounding accelerates over time.

Use a realistic return rate. The S&P 500 has returned about 10% annually before inflation, 7% after. High-yield savings accounts currently return 4-5%. Money market funds and CDs return 4-5%. Adjust the rate based on how you plan to invest.

Lump Sum with Compounding:

FV = PV × (1 + r/m)^(m×n)

Where PV = starting amount, r = annual rate, m = compounding periods per year, n = years.

Example: $10,000 at 7% for 20 years, compounded annually. FV = $10,000 × (1.07)^20 = $38,697.

Same investment compounded monthly: $10,000 × (1 + 0.07/12)^240 = $40,096. Monthly compounding adds about $1,400 over 20 years.

Recurring Deposits (Future Value of Annuity):

FV = PV×(1+r)^n + PMT × [(1+r)^n - 1] / r

Where PV = starting balance, PMT = monthly deposit, r = monthly rate (annual / 12), n = total months.

Example: $0 starting, $500/month, 7%, 20 years. FV = $500 × [(1 + 0.07/12)^240 - 1] / (0.07/12) = $262,481. Total deposited: $120,000. Interest earned: $142,481. That is more interest than deposits, thanks to compounding over 20 years.