Future Value Calculator

What is the Future Value Calculator?

The future value calculator tells you what a sum of money — invested today and optionally topped up every month — could be worth in the future at a given rate of return. It is a core time-value-of-money tool used in goal planning, retirement projections and savings decisions.

How does it work?

It combines two calculations: the lump sum is compounded at your chosen frequency for the full period, while the monthly contributions are treated as a series of investments that each compound until the end. Adding the two gives your projected future value.

Formula

FV = P(1 + r/m)^(m·t) + C × [ ((1 + i)^N − 1) / i ] × (1 + i)

• P = present lump sum amount
• r = annual rate of return
• m = compounding periods per year (lump sum)
• C = monthly contribution
• i = monthly rate (r ÷ 12)
• N = total number of months (t × 12)

Example calculation

Benefits

• ✓Handles both a one-time amount and ongoing contributions together.
• ✓Lets you test different compounding frequencies and time horizons.
• ✓Great for retirement, education and other long-term goal planning.

Limitations

• !Uses a constant return; actual returns are rarely steady.
• !Ignores inflation, taxes and investment costs.
• !Assumes contributions never miss and the rate never changes.

Conclusion

Knowing the future value of your money helps you reverse-engineer how much to invest today to hit a goal. Use conservative assumptions and revisit the projection as your income and the rate environment change.