Future Value Calculator
Project the future worth of your money. Calculate how initial principal and regular contributions grow over time with compounding interest.
Example Calculation
See how a $5,000 principal with $200/month contributions grows over 10 years at 8% return.
Step 1: Principal & Contributions
- FV_Principal: $5,000 × (1 + 0.08/12)^120 ≈ $11,098
- FV_Contrib: $200 × [((1.0066)^120 - 1) / 0.0066] ≈ $36,590
- Total Nominal Value ≈ $47,688
Step 2: Inflation Adjustment
At 2.5% inflation, the nominal value is reduced to today's purchasing power:
$47,688 / (1.025)^10 ≈ $37,254
Frequently Asked Questions
What is future value?
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. It is a fundamental concept in finance that accounts for the time value of money.
FV vs. Present Value?
Present Value (PV) is what a future sum of money is worth today. Future Value (FV) is what today's money will be worth in the future after earning interest.
How does frequency affect FV?
The more often interest is compounded (e.g., monthly vs. annually), the higher the future value will be. This is because you earn interest on your interest more frequently.
What return rate is realistic?
For long-term stock market investments, 7–10% is historical average. For high-yield savings, 4–5% is common. Always use conservative estimates for planning.
Why account for inflation?
$100 today buys more than $100 will in 10 years. Inflation-adjusting your future value shows the actual "purchasing power" your savings will have in the future.
Nominal vs. Real Value?
Nominal value is the literal dollar amount in the future. Real value is that amount adjusted for inflation to reflect its worth in today's terms.
Disclaimer: This calculator provides estimates for informational purposes only. Future values depend on market performance, taxes, and inflation which cannot be predicted with certainty. Consult a qualified professional before making significant financial decisions.