Future Value Calculator — Estimate Your Investment Growth
Use our Future Value Calculator to project how your savings or regular investments could grow over time. It’s designed for simplicity and flexibility, helping you explore different contribution plans, interest rates, and compounding frequencies — all with instant results.
Future Value Calculator
| Year | Deposits (this year) | Interest (this year) | Total deposits (incl. PV) | Accrued interest (cum.) | Balance |
|---|
🧮 How to Use the Future Value Calculator
Our calculator uses several key inputs to estimate how your balance will increase over time:
Present value: The current amount you have invested or saved.
Interest rate: The annual percentage return your investment earns.
Compounding frequency: How often your interest is added to your balance (for example, monthly, quarterly, or annually).
Time period: The total duration of your investment, expressed in years and months.
Regular contributions: Optional recurring deposits or withdrawals you make during the investment period.
You can include both deposits and withdrawals to simulate real-world investment behavior, and you may also choose to adjust for inflation to see the real-value growth of your money.
💡 How the Future Value Formula Works
The calculator applies a combination of the compound interest formula and the future value of a series formula to estimate how much your money will grow.
The exact formula depends on whether your deposits occur at the end or the beginning of each compounding period.
1. When deposits are made at the end of each period (ordinary annuity):
A=PMT×((1+rn)nt−1rn)A = PMT \times \left( \frac{(1 + \frac{r}{n})^{nt} – 1}{\frac{r}{n}} \right)
2. When deposits are made at the beginning of each period (annuity due):
A=PMT×((1+rn)nt−1rn)×(1+rn)A = PMT \times \left( \frac{(1 + \frac{r}{n})^{nt} – 1}{\frac{r}{n}} \right) \times (1 + \frac{r}{n})
Where:
A = Future value of the investment (total balance including interest)
PMT = Regular payment or deposit amount
r = Annual interest rate (in decimal form, e.g., 5% = 0.05)
n = Number of compounding periods per year (12 for monthly, 4 for quarterly, etc.)
t = Total investment duration in years
^ = Represents “to the power of”
These equations assume each payment is the same and that interest is compounded at consistent intervals.
📘 Example 1 – Regular Monthly Deposits
Scenario:
Lily contributes $100 every month to her investment account. She earns an annual interest rate of 5%, compounded monthly, for a total of 10 years.
Inputs:
PMT = 100, r = 0.05, n = 12, t = 10
Calculation:
A=100×(1+0.0041667)120−10.0041667=15,528.23A = 100 \times \frac{(1 + 0.0041667)^{120} – 1}{0.0041667} = 15,528.23
✅ After 10 years, Lily’s investment will grow to $15,528.23, of which $3,528.23 represents earned interest.
📘 Example 2 – Annual Deposits
Scenario:
Tom invests $10,000 per year, with an annual interest rate of 6%, compounded yearly, for 5 years.
Inputs:
PMT = 10,000, r = 0.06, n = 1, t = 5
Calculation:
A=10,000×(1+0.06)5−10.06=56,370.93A = 10,000 \times \frac{(1 + 0.06)^5 – 1}{0.06} = 56,370.93
✅ After 5 years, Tom’s account will be worth $56,370.93, including $6,370.93 in interest earnings.
⚠️ Important Reminder
These results are estimates only and assume a fixed interest rate and consistent deposit schedule.
Real-world investments can fluctuate depending on fees, taxes, inflation, and market performance.
For personalized advice on your financial goals, consider consulting a qualified financial planner.
A certified advisor can help design a strategy that matches your risk tolerance, budget, and long-term objectives.
If you’re in Australia, you can find accredited advisors through the Financial Advice Association Australia (FAAA) or visit Moneysmart.gov.au for guidance on choosing a financial professional.