Future Value Calculator (FV): Lump Sum & Annuity Growth
Free future value calculator. Calculate the future value (FV) of an investment, lump-sum deposit, or recurring cash flow annuity with compound interest.
Total Future Value (FV)
Total Out-of-Pocket Invested
Intereses Totales Ganados
Capital Multiplier
Interest Share of Total
Future Value Schedule
Annual Growth Trajectory| Year | Start Bal | Deposits | Interest | Ending FV |
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What is Future Value (FV)?
Future Value (FV) measures how much a current sum of money (Present Value, or PV) or a series of periodic cash inflows (Annuity, or PMT) will be worth at a specific date in the future, given an assumed compound interest rate. It forms the foundation of modern finance and personal investment planning.
The Mathematical Future Value Formula
FV = PV × (1 + r/m)^(m×t) + PMT × [ ((1 + r/m)^(m×t) - 1) / (r/m) ] × (1 + r/m)^timing
PV: Present Value (initial starting balance)
PMT: Periodic recurring contribution
r: Annual nominal interest rate (decimal)
m: Compounding frequency per year (12 for monthly, 365 for daily)
t: Time in years
timing: 1 if deposited at beginning of period (annuity due), 0 if at end (ordinary annuity)
Ordinary Annuity vs. Annuity Due
When you deposit money into an account, timing matters. With an ordinary annuity, deposits occur at the end of each period (e.g. at the end of the month). With an annuity due, deposits occur at the beginning of each period. Because annuity due deposits spend an extra period compounding in the account, they generate a slightly higher total Future Value over long time horizons.
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Preguntas Frecuentes
What is Future Value (FV)?
Future Value (FV) is the monetary value of a current asset, lump sum, or cash flow stream at a specified date in the future, based on an assumed rate of growth or compounding interest.
What is the formula for calculating Future Value with regular contributions?
For a lump sum with regular periodic additions: FV = PV × (1 + r/m)^(m×t) + PMT × [((1 + r/m)^(m×t) - 1) / (r/m)], where PV is present value, r is annual interest rate, m is compounding frequency per year, t is time in years, and PMT is periodic contribution.
What is the difference between an ordinary annuity and annuity due for future value?
In an ordinary annuity, contributions are deposited at the end of each period. In an annuity due, contributions are made at the beginning of each period, which gives every contribution an extra period to compound and results in a higher ending future value.
How does compounding frequency impact the future value of an investment?
More frequent compounding cycles (such as monthly or daily versus annually) result in higher future values because interest earned in earlier cycles begins generating its own interest sooner.