Financial Calculators
Future Value Calculator

# Future Value Calculator

Free future value calculator that uses the formula FV = PV (1 + I/Y)ⁿ to find the future value of an investment with periodic deposits.

Future Value

Future Value (FV): $39,869.90 Present Value (PV):$12,431.62

Number of Periods (N): 20

Interest Rate (I/Y): 6

Periodic Deposit (PMT): $200.00 Starting Amount:$10,000.00

Total Periodic Deposits: $4,000.00 Total Interest:$25,869.90

Starting amount

Periodic deposits

Interest

# BEGINNING BALANCE DEPOSIT INTEREST ENDING BALANCE
1 $10,200.00$200.00 $612.00$10,812.00
2 $11,012.00$200.00 $660.72$11,672.72
3 $11,872.72$200.00 $712.36$12,585.08
4 $12,785.08$200.00 $767.10$13,552.19
5 $13,752.19$200.00 $825.13$14,577.32
6 $14,777.32$200.00 $886.64$15,663.96
7 $15,863.96$200.00 $951.84$16,815.80
8 $17,015.80$200.00 $1,020.95$18,036.74
9 $18,236.74$200.00 $1,094.20$19,330.95
10 $19,530.95$200.00 $1,171.86$20,702.81
11 $20,902.81$200.00 $1,254.17$22,156.97
12 $22,356.97$200.00 $1,341.42$23,698.39
13 $23,898.39$200.00 $1,433.90$25,332.30
14 $25,532.30$200.00 $1,531.94$27,064.23
15 $27,264.23$200.00 $1,635.85$28,900.09
16 $29,100.09$200.00 $1,746.01$30,846.09
17 $31,046.09$200.00 $1,862.77$32,908.86
18 $33,108.86$200.00 $1,986.53$35,095.39
19 $35,295.39$200.00 $2,117.72$37,413.11
20 $37,613.11$200.00 $2,256.79$39,869.90

There was an error with your calculation.

## Predicting the Future Value of Investments

It’s impossible to predict the future. That’s why investing has some element of risk. For wise investors, there are calculations to help estimate the future value of an investment by making certain assumptions. The most basic of these calculations is Future Value. With future value, investors can understand if their current financial decisions will produce favorable returns over time.

Let’s take an example. Tom has $10,000 that he wants to invest in corporate stock. The historical growth rate for this company’s stock has been 7% per year. Tom plans to hold this stock for ten years and wants to see how much the$10,000 will be worth in the future. This will help him decide if the investment is worth it.

Investors often use the future value calculation to decide between different investments. For example, two investments may have different levels of risk. By understanding the future value of each, an investor can determine if the one investment creates enough future value to justify a higher risk. A future value calculator makes running multiple scenarios quick and easy.

## How to Use the Future Value Calculator

Learning how to calculate the future value of money with this calculator is simple. First, identify the starting amount you want to invest, the anticipated interest rate, and the length of time you plan to hold the investment.

• Step 1: Enter the information into each field (N, PV, and I/Y).
• Step 2 (Optional): If you plan to add periodic deposits or your investment pays regular annuity payments, you can add this amount in the PMT field. Also, you can select whether you deposit at the beginning or end of the compounding period. This will affect the final future value amount. If you are unsure, select the End option to be conservative. If you don’t plan to have periodic deposits, enter 0 into the field.
• Step 3: Click Calculate and review the results. The results will provide a breakdown of numbers, the future value amount, and graphs showing the investment growth. The Future Value Calculator will also provide a schedule showing each period’s start and end balances.

## Real Example

Let’s say you have $25,000 to invest and want to see the future value in 15 years. You’re anticipating an interest rate of 5%. You will also receive an annuity from this investment of$500 per year (which will be reinvested). The annuity payments will be made after each compounding period.

To calculate the future value of your investment, enter the following values:

• Number of Periods (N): 15
• Starting Amount (PV): $25,000 • Interest Rate (I/Y): 5% • Periodic Deposit (PMT):$500
• PMT timing: Select the End of the compound period.