Future Value Calculator

Projecting Your Investment's Growth

Future Value (FV) calculates the value of a current asset at a specified date in the future, based on an assumed rate of growth (interest rate). This calculator helps you see how much a single, lump-sum investment today could grow over time due to the power of compounding.

The Future Value Formula Explained

FV = PV * (1 + r)ⁿ

• FV (Future Value): The value of your investment at the end of the period.
• PV (Present Value): Your initial investment amount today.
• r (Interest Rate): The annual rate of return.
• n (Number of Years): The number of years the investment will grow.

How to Use the Calculator

1. Present Value: Enter the amount of your initial investment.
2. Interest Rate (%): Input the estimated annual rate of return.
3. Number of Years: Enter how many years you plan to let the investment grow.

Real-World Example

You invest a lump sum of $5,000 today. You expect it to grow at an average annual rate of 8% for 10 years.

• PV: $5,000
• r: 0.08
• n: 10
• Calculation: FV = 5000 * (1 + 0.08)¹⁰ = 5000 * 2.1589 ≈ $10,794.62
• In 10 years, your initial $5,000 investment would be worth approximately $10,794.62.

Frequently Asked Questions (FAQ)

• Does this calculator include additional contributions? No, this is a simple future value calculator for a single lump-sum investment. To see the growth of an investment with regular contributions, please use our Compound Interest Calculator or Investment Calculator.
• What if interest is compounded more than once a year? This calculator assumes annual compounding. If interest is compounded more frequently (e.g., monthly), the future value would be slightly higher. The more general formula is FV = PV * (1 + r/k)^(k*n), where 'k' is the number of compounding periods per year.
• Is this the same as the 'Investment Calculator'? It's a simplified version. Our main 'Investment Calculator' also includes the powerful feature of adding monthly contributions to your calculation.