Future Value Calculator
Enter a starting amount, an annual rate, the number of years and a payment added at the end of each year. The calculator compounds once a year and returns one figure, the future value, rounded to the cent.
How to use the Future Value Calculator
- Enter your numbers in the Future Value Calculator above.
- Press the Calculate button to see the result.
- To try other numbers, change any value and press the button again.
The future value formula
FV = PV(1 + r)^n + PMT · [((1 + r)^n − 1) / r]
PV is the present value (starting balance), r is the annual rate as a decimal, n is the number of years and PMT is the annual payment. The calculator compounds once a year and adds each payment at the end of the year. At a rate of 0 the future value is PV + PMT × n. Negative rates work too, as long as they stay above −100%.
Worked example
$5,000 starting balance with $2,400 added at the end of each year for 25 years at a 6% annual return. The calculator shows a future value of $153,134.18. By hand, you put in $5,000 + $60,000 = $65,000, so the growth is $88,134.18.
Frequently asked questions
Should I use a real or nominal return?
For long-term planning in today's purchasing power, subtract expected inflation from your nominal return. For a stated dollar goal in the future, use nominal.
Does the timing of contributions matter?
Slightly. With contributions at the start of each period, called an annuity due, the contribution part of FV is 1 + r times the end-of-period figure, because each contribution earns one extra period. This calculator adds each payment at the end of the year.
Why doesn't doubling my contribution double the result?
Only the contribution part of FV doubles. The starting balance grows the same way whatever you add each year, so the total rises by less than double unless the starting balance is zero.