Future Value Calculator
Calculate the future value of an investment with regular contributions and compound interest. See how your money grows over time.
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Understanding Future Value
Future value (FV) is what a current investment will be worth at a future date based on an assumed rate of growth. The formula for future value with regular contributions is:
The Power of Compound Interest
Albert Einstein reportedly called compound interest "the eighth wonder of the world." When interest earns interest on itself, growth becomes exponential rather than linear. $500/month at 8% for 30 years grows to over $745,000 — of which only $180,000 is your contributions.
Starting Early vs Starting Late
A 25-year-old investing $300/month at 8% until age 65 accumulates roughly $1.05 million. A 35-year-old investing $600/month (double) at the same rate accumulates only $894,000. Starting 10 years earlier with half the monthly investment produces more wealth.
Real-World Applications
Retirement planning: Calculate how much your 401K or IRA will be worth at retirement age. If you're 30 with $50,000 saved and contributing $500/month at 7%, you'll have approximately $1.1 million by age 65. Model this with our 401K Calculator.
Education savings: Project whether your 529 plan contributions will cover future tuition costs. College costs inflate at 5-8% annually. See our College Savings Calculator.
Emergency fund growth: Even a high-yield savings account at 4.5% grows meaningfully over time. $10,000 in a savings account with $200/month additions becomes $21,500 in 2 years.
The Impact of Starting Early
A 25-year-old investing $300/month at 8% until 65 accumulates about $1.05 million. A 35-year-old investing $600/month (double!) at the same rate only reaches $894,000. Starting 10 years earlier with half the contribution produces more wealth thanks to compound growth.
Inflation Adjustment
To get the "real" future value (in today's purchasing power), subtract the expected inflation rate from your return rate. If you expect 8% investment returns and 3% inflation, use 5% for inflation-adjusted projections. $100,000 at 8% for 20 years is $466,000 nominal, but only $265,000 in today's dollars at 3% inflation.