Calculate the future value of a lump sum, optional monthly contributions, or both, at a given annual interest rate and compounding frequency.
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Future value combines two pieces: your present value compounding on its own, FV = PV × (1 + r/n)^(n×t), plus, if you add a monthly contribution, the future value of that contribution stream, calculated using the future value of an annuity formula, compounded monthly alongside your deposits.
For example, 10,000 invested today at 7% annual interest compounded monthly, with no further contributions, grows to roughly 20,097 after 10 years. Add a 200 monthly contribution to that same scenario and the total future value climbs substantially higher, since each contribution also earns compound interest for the remainder of the period.
This calculator extends the standard compound interest formula by optionally adding recurring monthly contributions on top of your initial lump sum, useful for modeling a savings or investment account you're actively contributing to, rather than a single deposit left untouched.
Mismatching the compounding frequency selector with the rate actually quoted by a bank or fund, using 'monthly' when the account really compounds daily understates the true future value.
Forgetting that monthly contributions compound too, mentally estimating growth from the lump sum alone and treating added deposits as if they just accumulate at face value.
Entering an overly optimistic annual rate for a long time horizon, small rate differences compound into very large gaps in projected future value over 20-30 years.
Future value (FV) is what a sum of money today, or a series of contributions, will be worth at a specific point in the future, after accounting for compound interest or investment growth.
No, leave it at 0 to calculate the future value of a single lump sum with no ongoing contributions.
More frequent compounding (like daily vs annually) results in a slightly higher future value for the same nominal interest rate, since interest is added to the balance more often and starts earning its own interest sooner.
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