Future Value Calculator

Calculate how your investments can grow over time with the power of compound interest. Plan for your financial future with confidence.

Calculation Parameters

$
$0$50,000$100,000
%
0%10%20%
1 year20 years40 years

Calculation Summary

Type:
Lump Sum
Initial Investment:
$10,000.00
Interest Rate:
7.00%
Time Period:
10 years

Calculation Results

Our future value calculator is a useful tool that allows you to calculate the future value of all your investments, based on your initial investment amount, interest rate, and investment time horizon. This future value calculator allows you to estimate future investment value for retirement, children's education, or to build wealth using compound interest so you can visualize your investment experience over time.

Using our Future Value Calculator you can input values such as a lump sum investment, an annuity investment, interest rates and frequency of compounding to run different scenarios. By inputting many various elements (contributions), it may help provide you with a firm understanding of the growth potential of money, and the returns you may expect over the long-term.

Future Value Calculator

What is a Future Value Calculator?

A Future Value Calculator is a financial planning instrument that can determine how much your current investment will be worth at a future date given compound interest and contributions. The calculation includes:

Initial Investment (Principal) - The starting amount you invest.
Interest Rate - The annual rate of return you expect.
Compounding Frequency - How often your investment earns interest (annually, quarterly, monthly, etc.).
Time Period - The total duration of your investment in years.
Contribution Frequency - The frequency at which you add money to your investment.

This tool simplifies complex financial math, helping you make informed decisions about saving and investing.

How the Future Value Calculator Works

The Future Value Calculator uses the standard future value formula to determine your investment's growth:

Formula Used:

FV =PV x (1 + r)n

Where:

FV = Future Value
PV = Present Value or initial investment
r = Interest rate per compounding period
n = Total number of compounding periods

Using this formula, the calculator clearly shows you your future wealth, contribution amount, and interest earned.

Why Use Our Future Value Calculator?

Fast and Easy Estimates - You can calculate your future potential savings in an instant.
Set Inputs - You can change the interest rate, time horizon and contribution frequency to match your savings goals.
Investment Planning - You can utilize this to plan for retirement, large purchases, or long-term savings.
Visual Growth Charts - There are nice simple graphs you can view, either line or bar graphs, to show your trajectory of wealth.
Interest vs. Contribution Insights - You can see and understand the impact that accrued interest makes over time.

The Future Value Calculator is suitable for an individual, financial advisor, or business to project future returns reliably.

Benefits of Using a Future Value Calculator

1.
Make financial planning easier - You can avoid manual calculation of future value and instantly project the future value.
2.
Assist in developing realistic goals - Comfortably plan for a new home, retirement, or education payments.
3.
Illustrate effect of compounding - See firsthand how small differences in either rate or time change future value.
4.
Encourages early investing - Understand the benefits of starting early and staying invested.
5.
Comparison of scenarios - Compare lump sum vs. regular contributions for optimal growth.

The Future Value Calculator is a valuable asset for people who are committed to financial insurance. The best thing is, you only need to input the amount you are saving, the expected interest rate, and time horizon to see exactly how much your money can grow. This will help give you better understanding to make more informed financial decisions, so you can set attainable goals, and see the power of compounding.

Start using a Future Value Calculator today to start planning for a secure and prosperous future.

FAQs

A Future Value Calculator is used to determine how much your current investments or savings will be worth in the future using a compounding interest and contributions.

Absolutely! This tool is an excellent retirement planning tool as it will show how your savings will compound over time, while helping you to adjust contributions to meet your goals in the future.

Yes. You can calculate lump-sum growth or set up regular contributions so that you can see how much each approach affects your net worth.

The Future Value Calculator uses a standard financial equation so the results are as accurate as the calculation. Actual growth will likely differ due to market conditions and interest rate changes.

Use an interest rate that is realistic for the type of investment. For example, stock market returns could be 7 - 10% annually and savings accounts should be 1 - 2%.

Plan to review your projections annually and also whenever your investment strategy, contributions, or net worth changes.