Future Value Calculator

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Future Value Calculator
Future Value of Lump SumFuture Value of Annuity (Savings Plan)FV of Lump Sum + Annuity
Annually (1/yr)Semiannually (2/yr)Quarterly (4/yr)Monthly (12/yr)Daily (365/yr)
End of PeriodBeginning of Period
Result:
$ 0.00
Enter values above and click Calculate to see the future value.
function togglePmt(){var type=document.getElementById('calc_type').value;document.getElementById('row_pv').style.display=(type==='annuity')?'none':'table-row';document.getElementById('row_pmt').style.display=(type==='lump_sum')?'none':'table-row';document.getElementById('row_type').style.display=(type==='lump_sum')?'none':'table-row';}function calculateFV(){var mode=document.getElementById('calc_type').value;var pv=parseFloat(document.getElementById('pv').value)||0;var pmt=parseFloat(document.getElementById('pmt').value)||0;var rate=parseFloat(document.getElementById('rate').value)/100;var years=parseFloat(document.getElementById('years').value);var m=parseInt(document.getElementById('compound').value);var type=parseInt(document.getElementById('type').value);if(isNaN(rate)||isNaN(years)||isNaN(m)){alert('Please enter valid numerical values for Rate, Years, and Compounding.');return;}if(mode==='annuity')pv=0;if(mode==='lump_sum')pmt=0;var i=rate/m;var n=years*m;var fv_pv=pv*Math.pow(1+i,n);var fv_pmt=0;if(pmt!==0){if(i===0){fv_pmt=pmt*n;}else{fv_pmt=pmt*((Math.pow(1+i,n)-1)/i)*(1+i*type);}}var totalFV=fv_pv+fv_pmt;var totalInvested=pv+(pmt*n);var totalInterest=totalFV-totalInvested;document.getElementById('summaryResult').innerHTML='$ '+totalFV.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});var stepsText='Breakdown:
';stepsText+='Total Principal Invested: $'+totalInvested.toLocaleString(undefined,{minimumFractionDigits:2})+'
';stepsText+='Total Interest Earned: $'+totalInterest.toLocaleString(undefined,{minimumFractionDigits:2})+'
';if(document.getElementById('steps').checked){stepsText+='
Formula Used:
';stepsText+='FV = PV(1 + i)^n + PMT [((1 + i)^n – 1) / i] * (1 + i * type)
';stepsText+='Where:
i = '+rate+' / '+m+' = '+i.toFixed(6)+'
n = '+years+' * '+m+' = '+n+";}document.getElementById('details').innerHTML=stepsText;}

Using the Future Value Calculator

A future value calculator is an essential financial tool designed to help individuals and investors determine the value of a current asset or a series of cash flows at a specific date in the future. By accounting for the time value of money, this calculator illustrates how compound interest can grow your wealth over time.

Whether you are planning for retirement, saving for a child\'s education, or analyzing a business investment, knowing the future value (FV) allows you to make informed decisions today about your financial goals tomorrow.

Present Value (PV)
The current amount of money you have available to invest today. If starting from zero, enter 0.
Annual Interest Rate (R)
The expected annual rate of return or interest rate your investment will earn.
Number of Years (t)
The length of time you plan to keep the money invested.
Periodic Deposit (PMT)
The amount you plan to add to the investment regularly (monthly, quarterly, etc.).
Compounding Frequency (m)
How often interest is calculated and added to the principal (e.g., Monthly or Annually).

How Future Value Works

The future value calculation relies on the principle of compound interest. Unlike simple interest, which only calculates returns on the initial principal, compound interest calculates returns on both the principal and the interest accumulated from previous periods. The standard formula used by this future value calculator is:

FV = PV(1 + r/m)mt + PMT [((1 + r/m)mt – 1) / (r/m)] * (1 + (r/m) * type)

  • FV: Future Value
  • PV: Present Value (Principal)
  • r: Annual interest rate (decimal)
  • m: Number of compounding periods per year
  • t: Number of years
  • PMT: Periodic payment amount
  • type: 0 for end-of-period payments, 1 for beginning-of-period payments

Calculation Example

Example Scenario: Suppose you have $5,000 saved in a high-yield savings account (Present Value). You plan to deposit an additional $200 every month (PMT) for the next 5 years. The account offers a 4% annual interest rate, compounded monthly.

Step-by-Step Calculation:

  1. Present Value (PV) = $5,000
  2. Annual Rate (r) = 0.04
  3. Compounding (m) = 12 (Monthly)
  4. Years (t) = 5
  5. Periodic Deposit (PMT) = $200
  6. Calculate periodic rate (i): 0.04 / 12 = 0.003333
  7. Calculate total periods (n): 12 * 5 = 60
  8. FV of lump sum: $5,000 * (1.003333)^60 ≈ $6,104.98
  9. FV of annuity: $200 * [(1.003333^60 – 1) / 0.003333] ≈ $13,259.80
  10. Total Future Value: $6,104.98 + $13,259.80 = $19,364.78

Common Questions

What is the difference between Present Value and Future Value?

Present Value is what a future sum of money is worth right now, given a specific rate of return. Future Value is what a current sum of money will be worth at a specific point in the future after earning interest. They are two sides of the same coin, separated by time and interest.

How does inflation affect future value?

While this future value calculator shows you the numerical amount of money you will have, it does not account for purchasing power. Inflation typically reduces the value of currency over time. To find the "real" future value, you would subtract the inflation rate from your interest rate.

Why is compounding frequency important?

The more frequently interest is compounded, the faster your investment grows. For example, $1,000 at 10% compounded annually results in $1,100 after one year, but compounded daily, it results in approximately $1,105.16. Over many years, this difference becomes significant.

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