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Future value calculator
The future value of a lump sum and of regular payments, with payments at the start or end of each period.
Future value is what money grows to at a given rate. $1,000 at 5% for 10 periods becomes $1,629; adding $100 at the end of each period brings the total to $2,887.
Future value
$2,887
The lump sum grows to $1,629 and the payments to $1,258.
At 5% per period, payments at the end of each period.
| Period | Future value |
|---|---|
| 0 | $1,000 |
| 1 | $1,150 |
| 2 | $1,308 |
| 3 | $1,473 |
| 4 | $1,647 |
| 5 | $1,829 |
| 6 | $2,020 |
| 7 | $2,221 |
| 8 | $2,432 |
| 9 | $2,654 |
| 10 | $2,887 |
The formula
FV = PV × (1 + r)n + PMT × [(1 + r)n − 1] ÷ r
r is the rate per period and n the number of periods. When payments come at the start of each period (an annuity due), the payment part is multiplied by (1 + r) because each payment earns one more period of interest: $100 a period for 10 periods at 5% is $1,258 at the end and $1,321 at the start.
Matching the rate to the period
Use a rate for the same period as the payments: for monthly payments and a 6% yearly rate, use 0.5% and count months. $200 a month for 10 years at 0.5% a month is $32,776.
Questions people ask
How do you calculate future value?
Multiply the present amount by (1 + r) raised to the number of periods, then add the future value of any payments. $5,000 at 6% for 8 years: $5,000 × 1.068 = $7,969.
What will $10,000 be worth in 10 years?
At 5% a year, $16,289; at 7%, $19,672. In today's dollars, subtract inflation from the rate first.
Related
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Last reviewed by Asier Fernández, editor, on . Educational information only, not financial advice. How we calculate