Future Value Calculator
What will a sum of money, or a stream of regular payments, be worth in the future? Switch to present value to find what a future amount is worth today.
Rate per period 6.000% × 20 periods.
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Get a plain-English read of the result above: what drives it, what to try changing. It sends only the numbers in this calculator and your question. Educational only, not financial advice.
Money has a time price
A promise of $10,000 later is worth less than $10,000 now, because money in hand could be invested meanwhile. Future value and present value are the same equation run in opposite directions. Stretch the wait or raise the rate and today’s value shrinks.
$10,000 later = $3,118 today
Formulas
- Future value of a lump sum: FV = PV × (1 + r)n
- Future value of an annuity: FV = PMT × ((1 + r)n − 1) ÷ r
- Annuity due: multiply the annuity result by (1 + r)
- Present value: PV = FV ÷ (1 + r)n; for payments, PV = PMT × (1 − (1 + r)−n) ÷ r
Here r is the rate per period and n the number of periods. $200 a month for 30 years at 6% (0.5% a month, 360 periods) grows to $200 × (1.005360 − 1) ÷ 0.005 = $200,903.
For a projection with inflation and yearly deposit increases, try the investment calculator; to find the rate from two known values, use the CAGR calculator.
Questions people ask
What is the future value formula?
For a single sum: FV = PV × (1 + r)^n. For a series of equal payments (an ordinary annuity): FV = PMT × [((1 + r)^n − 1) ÷ r]. Add the two when you have both a starting amount and regular payments. For an annuity due (payments at the start of each period) multiply the annuity part by (1 + r).
What is present value?
Present value is today’s equivalent of money you will receive in the future, discounted at a rate of return: PV = FV ÷ (1 + r)^n. $10,000 in 10 years is worth $6,139 today at a 5% discount rate.
What is the difference between an ordinary annuity and an annuity due?
In an ordinary annuity payments are made at the end of each period (most loans and savings plans). In an annuity due they are made at the start (rent, many insurance premiums), so each payment earns one extra period of interest.
What rate should I use?
Use the rate of return you realistically expect (for projecting savings) or your required return / opportunity cost (for discounting). Make sure the rate matches the period: use a monthly rate with monthly periods.