Future Value Calculator
Estimate the future value of your investment with regular deposits and compound interest over time.
Periodic Contributions
Future Value
$17,510.44
Total Deposits
$14,800.00
Accrued Interest
$2,710.44
Time-Weighted Return
18.31%
Effective Rate (APY)
5.12%
Initial Deposit
$10,000.00
Total Interest Earned
$2,710.44
Breakdown
| Year | Deposits | Interest | Total Deposits | Accrued Interest | Balance |
|---|---|---|---|---|---|
| Start | $10,000.00 | - | $10,000.00 | - | $10,000.00 |
| 1 | $1,200.00 | $48.30 | $11,200.00 | $539.50 | $11,739.50 |
| 2 | $1,200.00 | $55.88 | $12,400.00 | $1,168.01 | $13,568.01 |
| 3 | $1,200.00 | $63.86 | $13,600.00 | $1,890.06 | $15,490.06 |
| 4 | $1,200.00 | $72.24 | $14,800.00 | $2,710.44 | $17,510.44 |
How to Use
- 1
Enter your present value (initial investment amount)
- 2
Set the annual interest rate and compounding frequency
- 3
Specify the investment duration in years and months
- 4
Optionally add periodic contributions with your preferred frequency and timing
- 5
View the future value, total deposits, accrued interest, and year-by-year breakdown
Examples
Good Examples
Growth with monthly deposits
$10,000 initial + $100/mo at 5% for 4 years (monthly compounding) = $17,510.44Long-term investment growth
$10,000 initial at 8% for 30 years (no deposits) = $100,626.57Annuity due advantage
$100/mo at 5% for 10 years (deposits at beginning) earns slightly more than end-of-period depositsBad Examples
Ignoring compounding frequency
5% compounded monthly ≠ 5% compounded annually — the difference compounds over timeUsing unrealistic interest rates
Expecting 15%+ annual returns consistently over decadesForgetting inflation
A future value of $17,510 at 3% inflation is only worth ~$15,600 in today's dollars after 4 yearsCommon Mistakes
- Confusing present value with total deposits — total deposits includes your initial amount plus all contributions
- Ignoring compounding frequency — more frequent compounding leads to higher effective returns
- Not distinguishing deposit timing — beginning vs end of period makes a difference (annuity due vs ordinary annuity)
- Forgetting inflation erodes real returns — always consider the purchasing power of future money
- Using nominal rate instead of effective rate — 5% compounded monthly is actually 5.12% APY
Frequently Asked Questions
What is future value?
Future value (FV) is the value of an asset or investment at a specified date in the future, based on an assumed rate of growth over time. It shows how much your money will be worth after earning interest or returns.
What is the difference between ordinary annuity and annuity due?
In an ordinary annuity, deposits are made at the end of each period. In an annuity due, deposits are made at the beginning. Annuity due earns slightly more interest because each deposit has one extra compounding period to grow.
What is APY and how does it differ from the stated rate?
APY (Annual Percentage Yield) is the effective annual rate that accounts for compounding. For example, 5% compounded monthly gives an APY of 5.12%. The more frequently interest compounds, the larger the gap between nominal rate and APY.
What does "Time-Weighted Return" mean?
Time-Weighted Return (TWR) represents the cumulative rate of return adjusted for the effects of your regular deposits. It shows the percentage gain on your total invested amount, helping you evaluate investment performance.
Can I use this for retirement planning?
Yes — enter your current savings as the present value, your expected annual return, the years until retirement, and your planned monthly contributions. The calculator will estimate your retirement nest egg.