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Future Value Calculator

Calculate the future value of an investment with periodic deposits. See growth schedule with interest breakdown.

$
% per period
$ /period

Payment made at the

Future Value
$13,944.24
PV (Present Value)
$11,260.96
Total Deposits
$1,800.00
Total Interest
$7,144.24
Starting (81%)
Deposits (13%)
Interest (6%)

Schedule

#Start BalanceDepositInterestEnd Balance
1$5,000.00$150.00$350.00$5,500.00
2$5,500.00$150.00$385.00$6,035.00
3$6,035.00$150.00$422.45$6,607.45
4$6,607.45$150.00$462.52$7,219.97
5$7,219.97$150.00$505.40$7,875.37
6$7,875.37$150.00$551.28$8,576.65
7$8,576.65$150.00$600.37$9,327.02
8$9,327.02$150.00$652.89$10,129.91
9$10,129.91$150.00$709.09$10,989.00
10$10,989.00$150.00$769.23$11,908.23
11$11,908.23$150.00$833.58$12,891.81
12$12,891.81$150.00$902.43$13,944.24

Future Value Formula

Future value combines the growth of an initial lump sum with periodic deposits:

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

  • FV = future value
  • PV = present value (starting amount)
  • r = interest rate per period (as decimal)
  • n = number of periods
  • PMT = periodic deposit amount

For annuity due (payments at the beginning), multiply the PMT portion by (1 + r).

Two Components

  • FV of lump sum: PV × (1 + r)n — how the initial investment grows
  • FV of annuity: PMT × [((1 + r)n - 1) / r] — how periodic deposits accumulate

Example

You invest $5,000 today and add $150 per period at 7% for 12 periods:

  • Starting amount grows to: $5,000 × (1.07)12 = $11,260.96
  • Periodic deposits accumulate: $150 × [(1.0712 - 1) / 0.07] = $2,681.58
  • Total deposits: $150 × 12 = $1,800
  • Total interest earned: $7,942.54
  • Future value: $13,942.54

Ordinary Annuity vs Annuity Due

FeatureOrdinary Annuity (End)Annuity Due (Beginning)
Payment timingEnd of each periodBeginning of each period
First payment earns interest?No (made at end of period 1)Yes (made at start of period 1)
Future valueLowerHigher (each payment earns one extra period)
Common usesLoan payments, bond couponsRent, insurance premiums, lease payments

Common Applications

  • Retirement savings: How much will my 401(k) be worth with monthly contributions?
  • Education fund: How much to save per month to reach a college tuition target?
  • Investment growth: Project portfolio value with regular contributions
  • Sinking fund: Calculate periodic deposits needed to reach a target future amount

Tips

  • Match rate and period: If periods are months, use a monthly rate (annual rate ÷ 12)
  • Start early: Due to compounding, starting 10 years earlier can double the final value even with the same contributions
  • Account for inflation: Use a real return rate (nominal rate minus inflation) for purchasing-power-adjusted projections

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Frequently Asked Questions

What is future value?

Future value (FV) is the value of a current investment at a specified date in the future, based on an assumed growth rate. It accounts for both the growth of the initial investment and any additional periodic deposits.

What is the difference between beginning and end of period payments?

End-of-period (ordinary annuity) means deposits are made at the end of each period, so the first deposit earns no interest in period 1. Beginning-of-period (annuity due) deposits are made at the start, so each deposit earns one extra period of interest.

What does "period" mean?

A period is the compounding interval — it could be a year, month, quarter, or any time unit. The interest rate should match: if periods are months, use a monthly rate.

How is future value different from compound interest?

Compound interest calculates growth on a single lump sum. Future value extends this by also including periodic deposits (PMT) made at regular intervals throughout the investment period.

Can I use this for retirement planning?

Yes. Set your current savings as the starting amount, monthly contribution as the periodic deposit, expected annual return divided by 12 as the interest rate, and number of months until retirement as periods.