Future Value Calculator
Calculate the future value of your investments with compound interest
Calculate Future Value
Initial amount to invest today
Expected annual return rate
How long will you invest
How often interest compounds
Future Value Calculation Results
Additional Investment Metrics
Effective Annual Rate (APY): 0.00%
Compounding Periods: 0
Investment Duration: 0.00 years
Doubling Time (Rule of 72): 0.0 years
Average Annual Growth: NaN%
Interest to Principal Ratio: 0.00
Investment Planning Insights
Example: Investment Growth
Basic Calculation
Present Value: $10,000
Interest Rate: 7% annually
Time Period: 10 years
Formula: FV = PV × (1 + r)^n
Calculation: $10,000 × (1.07)^10
Future Value: $19,671.51
Monthly Compounding
Same Investment: $10,000
Rate: 7% annually, monthly compounding
Formula: FV = PV × (1 + r/12)^(12×n)
Future Value: $20,096.61
Extra Earnings: $425.10
Key Insight
More frequent compounding increases returns. Time and compound interest are the most powerful forces in investing.
Compounding Frequency Impact
Daily (365x)
Highest compound growth
Best for savings accounts
Monthly (12x)
Good balance of growth
Common for CDs and bonds
Annual (1x)
Simple compound growth
Basic investment returns
Future Value Tips
Start investing early to maximize compound interest
Higher compounding frequency increases returns
Consider inflation when planning long-term
Regular contributions can significantly boost future value
Use the Rule of 72 to estimate doubling time
Understanding Future Value
What is Future Value?
Future Value (FV) is the value of an investment at a specific time in the future, assuming a certain rate of return. It shows how much your current investment will grow over time with the power of compound interest.
Time Value of Money
Money available today is worth more than the same amount in the future because of its potential earning capacity. This is the foundation of all finance and investment decisions.
Benefits of FV Calculations
- •Plan for financial goals like retirement
- •Compare different investment options
- •Understand the impact of compound interest
- •Make informed financial decisions
Future Value Formulas
Annual Compounding:
FV = PV × (1 + r)^n
Where PV = Present Value, r = interest rate, n = years
Frequent Compounding:
FV = PV × (1 + r/k)^(n×k)
Where k = compounding frequency per year
Rule of 72: To estimate doubling time, divide 72 by the annual interest rate. For example, at 6% annual return, your money doubles in approximately 12 years (72 ÷ 6 = 12).
Investment Strategies Using Future Value
Goal-Based Investing
Use future value calculations to determine how much to invest today to reach specific financial goals in the future.
Retirement Planning
Calculate how your retirement savings will grow over time and adjust contributions accordingly to meet your retirement needs.
Investment Comparison
Compare different investment options by calculating their future values under various scenarios and compounding frequencies.