Future value is the bedrock of time-value-of-money math: what a sum of money, plus any regular payments, will be worth at a later date given a rate of interest. This calculator is built like a financial calculator. You set the number of periods and how long each period is, the annual rate and how often it compounds, and the present value and payment. It returns the future value, splits it into its two sources, and gives you the equivalent spreadsheet formula so you can reproduce the result anywhere.
How to use the future value calculator
- Enter the present value — what you have at the start.
- Enter the payment each period: positive for deposits, negative for withdrawals, blank for none.
- Enter the number of periods (N) and choose what one period is: a year, quarter, month, week or day.
- Enter the annual nominal rate and the compounding frequency. “Once per period” means interest compounds as often as payments are made.
- Choose whether payments happen at the end or beginning of each period.
The time value of money equation
All five TVM variables are tied together by one equation. Solved for future value:
i is the rate per period and type is 0 for end-of-period payments, 1 for beginning. When compounding and payment frequencies differ, i = (1 + APR ÷ m)m/p − 1.
Worked example
You have $10,000, will add $150 at the end of every month for 120 months, and earn 5% compounded monthly.
- Rate per month: 5% ÷ 12 = 0.416667%
- Present value grows to $10,000 × 1.00416667120 = $16,470.09
- Payments grow to $150 × (1.00416667120 − 1) ÷ 0.00416667 = $23,292.34
- Future value: $39,762.44 — $28,000 deposited plus $11,762.44 of interest
The spreadsheet equivalent is =FV(0.00416667, 120, -150, -10000, 0).
Compounding frequency vs. payment frequency
Keeping the same monthly deposits and the same 5% nominal rate, only the compounding changes:
| Compounding | Rate per month | Future value |
|---|---|---|
| Annually | 0.407412% | $39,443.42 |
| Quarterly | 0.414943% | $39,702.77 |
| Monthly | 0.416667% | $39,762.44 |
| Daily | 0.417507% | $39,791.56 |
| Continuously | 0.417536% | $39,792.56 |
More frequent compounding helps, but with sharply diminishing returns: going from monthly to continuous adds only about $30 over ten years. The rate itself and the time horizon matter far more.
Getting the inputs right
- Match N to the period length. Ten years of monthly payments is N = 120, not 10.
- Use the nominal rate (APR) with its compounding frequency, or enter an effective annual rate with annual compounding. Mixing the two overstates or understates growth.
- Keep signs consistent. If the payment is a withdrawal, enter it as a negative number; the calculator will show its effect as a negative contribution.
For a single deposit with no payments, the future value of a lump sum calculator compares compounding frequencies side by side; for level payments only, see the future value of annuity calculator. To work in the other direction, use the present value calculator, and the future value formula page explains the algebra step by step.
Results assume a constant rate and are estimates for planning and study, not financial advice.
Frequently asked questions
What inputs does a future value calculation need?
Five time-value-of-money variables are involved: number of periods (N), interest rate, present value (PV), payment per period (PMT) and future value (FV). Give any four and the fifth follows. This calculator takes N, rate, PV and PMT and returns FV.
Why does the spreadsheet formula use negative numbers?
Spreadsheet FV functions follow a cash-flow sign convention: money you pay in is negative and money you receive is positive. Entering −PV and −PMT returns a positive future value, the amount you will get back.
What if interest compounds at a different frequency than my payments?
Choose the compounding frequency separately. The calculator converts the annual rate into the equivalent rate per payment period: (1 + APR ÷ m)^(m ÷ p) − 1, where m is compounding periods and p is payment periods per year.
Can the payment be negative?
Yes. A negative payment represents a withdrawal. Starting with $30,000 and withdrawing $150 a month for 10 years at 5% leaves about $26,118.
How does payment timing affect future value?
Payments at the beginning of each period (an annuity due) earn one extra period of interest. In the example on this page, switching the $150 monthly payments to the start of each month adds about $97.