Balance over time
Year by year
The formula
How it works
Future value tells you what a sum of money today will be worth later, once it has earned compound interest. Enter an amount, a rate and a number of years to see how much it grows into — and watch the balance climb year by year.
FAQ
Does this assume compound interest?
Yes. Each year’s interest is added to the balance and earns interest itself the next year, which is why the growth curve bends upward rather than rising in a straight line.
What if I add money every year too?
This calculator grows a single lump sum. For regular deposits on top, use a savings or investment calculator that includes recurring contributions.
What rate should I use?
Use a realistic expected annual return for the type of asset — a savings account, bond fund or stock portfolio each have very different typical rates, and the result is only as good as this assumption.
How does compounding frequency affect the result?
This calculator compounds once per year. Compounding monthly or daily at the same stated annual rate grows a balance slightly faster, since interest is added and starts earning sooner.
Does future value account for inflation?
No — the figure it returns is in nominal dollars. To see growth in today’s purchasing power, subtract an assumed inflation rate from the return before entering it, or discount the result separately.
What happens if I enter a rate of 0%?
With a 0% rate the future value simply equals the present value — no growth occurs, since there is no interest to compound.
Can the rate be negative?
Yes. A negative rate models a balance that shrinks over time, such as an asset expected to lose value, and the formula still works the same way.
About the future value calculator
This calculator shows what a lump sum invested today will be worth after a number of years of compound growth. Money that earns interest grows over time, and future value puts an exact figure on that growth. It is the flip side of present value: instead of asking what a future amount is worth now, it asks what today’s amount will become later. That makes it a simple way to picture the reward of leaving savings untouched.
How to use it
Enter the present value — the amount you have today — then the annual interest rate and the number of years you plan to leave it invested. The calculator returns the future value and the total growth. For example, $1,000 at 6% for 10 years grows to about $1,790, a gain of roughly $790. The chart and table below trace the balance year by year, so you can see how compounding speeds up the longer the money stays put.
The formula
Future value uses , where is the present value, is the yearly rate written as a decimal (6% becomes 0.06) and is the number of years. The term is the growth factor: each year multiplies the balance by , so over years those factors stack up through repeated multiplication. The gain, or interest earned, is simply .
Where it is used
Savers use it to set goals — how large a deposit today becomes a target amount later — while investors use it to compare opportunities with different rates and time horizons. Financial planners rely on it to project pensions and college funds, and businesses use it to value cash they expect to hold. Because it captures the core idea of compound growth, it underpins nearly every long-term money decision, from retirement saving to reinvesting a windfall.