Future value answers a simple question: what will money be worth later if it earns a given rate? It is the foundation of retirement planning, savings goals and comparing investments. This calculator handles a starting lump sum, recurring payments, different compounding frequencies, and whether payments land at the start or end of each period (an annuity due versus an ordinary annuity).
How this calculator works
The present value compounds for the full number of periods at the periodic rate — the annual rate divided by the number of periods per year.
Recurring payments are valued as an annuity. With payments at the end of each period (ordinary annuity), the last payment earns nothing. With payments at the beginning (annuity due), every payment earns one extra period of interest, so the annuity part is multiplied by (1 + r).
The two parts are added together. The calculator also shows how much of the total is your own money versus interest.
The formula
FV = PV(1 + r)^n + PMT × ((1 + r)^n − 1) / r × (1 + r·type)- PV
- present value (lump sum today)
- PMT
- payment per period
- r
- periodic rate = annual rate ÷ periods per year
- n
- total periods = years × periods per year
- type
- 0 for end of period, 1 for beginning
Worked example
You have $25,000 today and will add $1,500 every quarter for 15 years at 5% compounded quarterly. The periodic rate is 1.25% and there are 60 periods.
The lump sum grows to $25,000 × 1.0125^60 ≈ $52,700. The quarterly payments total $90,000 and grow to about $133,000 with end-of-period timing, for a future value near $185,700.
Switch to beginning-of-period payments and the annuity portion gains about 1.25%, adding roughly $1,700 — a small but real reward for investing earlier.
Tips
- Match the payment frequency to how you actually save; monthly is most common for paychecks.
- To see results in today's dollars, subtract expected inflation from your rate.
- Use this alongside the investment fee calculator to see the effect of costs.
Frequently asked questions
What is the difference between future value and present value?
Future value tells you what money today will grow to later. Present value works in reverse, telling you what a future amount is worth today given a discount rate.
What is an annuity due?
An annuity due is a series of payments made at the beginning of each period, such as rent. Each payment earns one more period of interest than an ordinary annuity, so its future value is higher.
How do I calculate future value in Excel?
Use =FV(rate, nper, pmt, pv, type). Enter payments and present value as negative numbers to get a positive future value, and use type 1 for beginning-of-period payments.
Does future value account for inflation?
Not by default. For an inflation-adjusted result, use a real rate of return, approximately your expected return minus expected inflation.