Future Value Calculator
Calculate the future value of your investment or savings with compound interest. Includes periodic payments and multiple compounding frequencies.
Investment Details
Future Value Results
$16,470.09
$6,470.09
$10,000.00
Initial + Periodic Payments
Future Value Growth Over Time
Year-by-Year Breakdown
| Year | Present Value | Payments | Interest | Future Value |
|---|---|---|---|---|
| 0 | $10,000.00 | $0.00 | $0.00 | $10,000.00 |
| 1 | $10,000.00 | $0.00 | $511.62 | $10,511.62 |
| 2 | $10,000.00 | $0.00 | $1,049.41 | $11,049.41 |
| 3 | $10,000.00 | $0.00 | $1,614.72 | $11,614.72 |
| 4 | $10,000.00 | $0.00 | $2,208.95 | $12,208.95 |
| 5 | $10,000.00 | $0.00 | $2,833.59 | $12,833.59 |
| 6 | $10,000.00 | $0.00 | $3,490.18 | $13,490.18 |
| 7 | $10,000.00 | $0.00 | $4,180.36 | $14,180.36 |
| 8 | $10,000.00 | $0.00 | $4,905.85 | $14,905.85 |
| 9 | $10,000.00 | $0.00 | $5,668.47 | $15,668.47 |
| 10 | $10,000.00 | $0.00 | $6,470.09 | $16,470.09 |
The Future Value Calculator helps you determine how much your investment or savings will be worth in the future, accounting for compound interest and periodic contributions. Whether you're planning for retirement, saving for a major purchase, or investing for long-term goals, understanding future value is essential for making informed financial decisions.
Future value represents the amount of money an investment will grow to over time, given a specific interest rate and compounding frequency. It's the opposite of present value - while present value tells you what money today is worth, future value tells you what today's money will be worth in the future.
This calculator accounts for both lump-sum investments and periodic payments, making it perfect for scenarios like regular savings contributions, investment portfolios, or retirement planning. The power of compound interest means that even small regular contributions can grow significantly over time.
How Future Value Works
Future value is calculated using the compound interest formula, which accounts for:
- Present Value (PV): The initial amount you invest or save
- Interest Rate (r): The annual interest rate or return on investment
- Time Period (t): The number of years the investment will grow
- Compounding Frequency (n): How often interest is compounded (annually, monthly, daily, etc.)
- Periodic Payments (PMT): Regular contributions you make to the investment
The formula combines the future value of your initial investment with the future value of your periodic payments, giving you a complete picture of your investment growth.
The Power of Compound Interest
Compound interest is often called the "eighth wonder of the world" because it allows your money to grow exponentially over time. Unlike simple interest, which only pays interest on the principal, compound interest pays interest on both the principal and previously earned interest.
Example:
If you invest $10,000 at 5% annual interest:
- After 10 years: $16,289 (with compound interest)
- After 20 years: $26,533
- After 30 years: $43,219
The longer you invest, the more dramatic the growth becomes due to compounding.
Impact of Compounding Frequency
The frequency of compounding significantly affects your future value. More frequent compounding (daily or monthly) results in higher returns than less frequent compounding (annually), because interest earns interest more quickly.
For example, $10,000 at 5% annual interest over 10 years:
- Annual compounding: $16,289
- Monthly compounding: $16,470
- Daily compounding: $16,486
While the difference may seem small, it becomes more significant over longer periods and with larger investments. Always check the compounding frequency when comparing investment options.
Periodic Payments and Future Value
Adding regular periodic payments to your investment can dramatically increase your future value. Even small monthly contributions can make a significant difference over time.
Example:
Starting with $10,000 and adding $200 monthly at 5% interest:
- After 10 years: $44,677 (vs $16,289 without payments)
- After 20 years: $96,463 (vs $26,533 without payments)
- After 30 years: $186,281 (vs $43,219 without payments)
The combination of compound interest and regular contributions creates powerful wealth-building potential. This is why starting early and contributing regularly is so important for long-term financial goals.
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