FV of Investment Calculator

Future value is the projected worth of an investment at a specific point in the future, based on an assumed rate of growth. It accounts for your starting principal, any regular contributions, and the effect of compounding interest over time. Knowing your FV helps you plan whether you are on track to meet financial goals like retirement or a major purchase.

The more frequently interest is compounded, the more you earn, because interest is calculated on previously accumulated interest more often. Daily compounding produces slightly more growth than annual compounding at the same stated rate. For long investment horizons, the difference between monthly and daily compounding is relatively small, while the gap between annual and monthly is more noticeable.

When contributions are made at the beginning of a period (annuity due), each payment earns one extra compounding period of interest compared to end-of-period contributions (ordinary annuity). Over many years, this timing difference can meaningfully increase your total future value, so investing at the start of each month generally yields a higher result.

Use your expected average annual rate of return. Historically, a diversified stock portfolio has returned around 7–10% per year before inflation. For more conservative bond-heavy portfolios, 3–5% may be more appropriate. You can run the calculator multiple times with different rates to see a range of possible outcomes.

No, this calculator uses a nominal interest rate and does not adjust results for inflation. To estimate real (inflation-adjusted) future value, you can subtract your expected annual inflation rate (typically 2–3%) from your interest rate before entering it. This gives you a conservative estimate of purchasing power.

Future value combines the growth of your initial lump sum and the future value of your periodic contributions. The lump-sum portion uses FV = PV × (1 + r/n)^(n×t), while the annuity portion uses FV = PMT × [((1 + r/n)^(n×t) − 1) / (r/n)]. If contributions are made at the beginning of the period, the annuity result is multiplied by (1 + r/n) to account for the extra compounding.

Compounding is exponential, meaning even a 1% difference in annual return compounds significantly over decades. For example, $10,000 growing at 6% for 30 years reaches about $57,435, while at 7% it reaches about $76,123 — a difference of nearly $19,000 from just one extra percentage point. This is why maximizing your rate of return matters so much for long-term investors.

Yes. Enter your current retirement savings as the initial investment, your expected monthly savings as the contribution, your anticipated average annual return as the interest rate, and the number of years until retirement as the period. The resulting future value gives you an estimate of your retirement nest egg. Remember to consider taxes, inflation, and changing contribution levels for a more complete picture.