What Is Future Value?
Future value (FV) is the worth of a current sum of money at a specific point in the future, assuming it grows at a fixed compound rate of return. It answers the question: "If I invest this amount today, how much will it be worth later?" Because money earns interest on both the original principal and previously accumulated interest, compounding can dramatically increase the value of an investment over long horizons.
How to Use This Calculator
Enter three values: the present value (the amount you have today), the interest rate per period as a percentage, and the number of periods. The calculator returns the projected future value plus the total interest earned. Make sure your rate and number of periods use the same time unit — for example, an annual rate with a number of years, or a monthly rate with a number of months.
The Formula Explained
The core equation is $$FV = PV \times (1 + r)^n$$ where PV is the present value, r is the periodic interest rate expressed as a decimal (5% becomes 0.05), and n is the number of compounding periods. The term \((1 + r)^n\) is the growth factor that captures compounding.
Worked Example
Suppose you invest $1,000 at 5% annual interest for 10 years. Then $$FV = 1000 \times (1.05)^{10} = 1000 \times 1.628894 = \$1{,}628.89$$ The total interest earned is $628.89. Notice this is more than the $500 you'd get with simple interest — the extra $128.89 comes from compounding.
FAQ
Does this account for additional deposits? No — this calculator assumes a single lump sum with no further contributions. For recurring deposits, use an annuity future value calculator.
What if the rate is per month but I have years? Convert to a single unit first. For monthly compounding over 10 years, use 120 periods and the monthly rate.
Can the rate be zero? Yes. With a 0% rate, the future value equals the present value because no growth occurs.
