What future value means
Future value answers a simple question: if you put a lump sum aside today and leave it to earn interest, what will it be worth later? It's the most basic building block of compound growth — no ongoing deposits, just one amount growing over time. The formula is future value = present amount × (1 + rate ÷ periods) raised to periods × years.
Why compounding frequency matters
The more often interest is added, the more you earn, because each addition then earns interest itself. Daily compounding beats monthly, which beats yearly, though at typical rates the difference over a lump sum is modest. Switching the frequency here shows exactly how much it changes your result.
A simpler cousin of compound interest
If you also plan to add money every month, use a full compound-interest or savings-goal calculator instead. This tool is deliberately stripped down for the single most common question — "if I invest this much now, what's it worth in X years?" — so you get a clean answer without extra inputs.
Frequently asked questions
Does this include monthly deposits?
No. It calculates the growth of a single lump sum only. For regular contributions, use a compound interest or savings goal calculator.
Is the result adjusted for inflation?
No, it shows the nominal future value. To see purchasing power, subtract your expected inflation rate from the interest rate before entering it.
What is future value?
How much a sum of money will be worth later if it grows at a given rate. With compound interest: FV = PV × (1 + rate)^periods.
How does compound growth work?
Each period earns interest on the principal and on prior interest, so growth accelerates over time.
What if I add regular contributions?
Future value rises considerably, because each contribution also earns interest. The tool includes them if you enter a deposit.