Future Value Calculator
Calculate the future value of a lump sum plus regular periodic contributions, given a rate of return and a number of periods.
How to use this tool
- Enter your starting amount (present value).
- Enter the return rate per period and the number of periods.
- Add a contribution per period if you invest regularly (or leave it at 0).
- Read the future value, total contributions, and total growth.
- Keep the rate and periods on the same unit (both annual or both monthly).
Future value shows what your money becomes after it compounds. Enter a starting amount, a return rate, the number of periods, and any regular contributions to see the projected balance and how much is growth.
Formula
Future value = PV × (1 + r)n + PMT × [ ((1 + r)n − 1) ÷ r ], where PV is the starting amount, PMT the contribution per period, r the rate per period, and n the number of periods. (When r = 0, the contribution term is simply PMT × n.)
Total contributions = PV + PMT × n.
Total growth = Future value − Total contributions — the part earned from compounding.
How it works
Future value answers the question: what will money invested today, plus any regular additions, be worth after it compounds at a given rate? It combines two pieces — the growth of an initial lump sum and the growth of a stream of equal periodic contributions (an ordinary annuity, with each payment made at the end of the period).
The lump-sum term, PV × (1 + r)n, is straightforward compound growth. The contribution term sums the growth of every payment using the annuity formula; when the rate is exactly zero it collapses to simply adding up the contributions. Separating the result into total contributions and total growth makes the power of compounding visible: over long horizons, growth often dwarfs the dollars you actually put in.
This model assumes a constant rate, contributions at the end of each period, and that the rate and period units match (annual rate with yearly periods, or monthly rate with monthly periods). It ignores taxes, fees, and inflation; for an inflation-adjusted result use a real (after-inflation) rate. Reviewed by the AbraCalc Investing Desk. This tool provides general information, not investment advice; verify figures and consult a licensed professional before investing.
Worked example
$10,000 lump sum at 6% per period for 10 periods, no contributions
- Growth factor = (1 + 0.06)10 = 1.790847.
- Future value = $10,000 × 1.790847 = $17,908.48.
- Total contributions = $10,000 (no periodic additions).
- Total growth = $17,908.48 − $10,000 = $7,908.48.
Future value: $17,908.48 — $10,000.00 contributed, $7,908.48 of growth.
Future value of $10,000 over 20 periods (no contributions)
| Rate per period | Growth factor | Future value |
|---|---|---|
| 3% | 1.8061 | $18,061.11 |
| 5% | 2.6533 | $26,532.98 |
| 7% | 3.8697 | $38,696.84 |
| 10% | 6.7275 | $67,275.00 |
Key terms
- Future value (FV)
- What an amount invested today, plus any contributions, will grow to after compounding.
- Present value (PV)
- The lump sum you start with today, before any growth.
- Ordinary annuity
- A series of equal payments made at the end of each period, as modelled here.
- Rate per period
- The growth rate applied each period; it must match the period unit (e.g. annual rate with yearly periods).
- Compounding
- Earning returns on previously earned returns as well as on the original principal.
Frequently asked questions
- How is future value calculated?
- Future value = PV × (1 + r)^n for a lump sum, plus PMT × ((1 + r)^n − 1) ÷ r for regular end-of-period contributions, where r is the rate per period and n the number of periods.
- What is the difference between contributions and growth?
- Total contributions are the dollars you put in (starting amount plus all periodic additions). Total growth is everything earned on top of that through compounding.
- Do the rate and periods have to match?
- Yes. Use an annual rate with a number of years, or a monthly rate with a number of months. Mixing units gives an incorrect result.
- Does this account for inflation?
- Not directly. To see future value in today's purchasing power, enter a real (after-inflation) rate of return instead of a nominal one.