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Finance · Time Value of Money

Future Value Calculator

Grow a single lump sum to its worth after years of compounding at a fixed rate.

The lump sum you have today.
%
Expected yearly growth rate.
How long the sum compounds.
Compounding
Try a scenario
Future value (FV)
$9,835.76

Total growth: $4,835.76 on a $5,000.00 starting sum.

Balance over time
Future value of the lump sum growing over time$9,835.76$5,000.00Year 0Year 10

Value of the single $5,000.00 deposit at the end of each year, compounding annual at 7%.

Future value is what a lump sum today grows to after compounding, given by FV = PV × (1 + r)^n. Put in $5,000 at a 7% annual rate for 10 years and it grows to $9,835.76 — the $5,000 nearly doubles, with $4,835.76 of that being pure compound growth.

What future value means

Future value (FV) answers a single question: if I set aside a fixed amount today and leave it to earn a steady return, what will it be worth later? It puts a number on the time value of money — the idea that a dollar in hand now is worth more than a dollar promised in the future, because today’s dollar can be invested and grow. This tool handles a single lump sum. Its mirror image is present value, which discounts a future amount back to what it is worth today.

FV = PV × (1 + r)^n

PV is the present amount, r the annual rate as a decimal, and n the number of years; total growth = FV − PV

Worked example

Grow $5,000 at a 7% annual rate for 10 years.

  1. 1
    Write the rate as a decimal. r = 7% ÷ 100 = 0.07.
  2. 2
    Add 1 to the rate. 1 + 0.07 = 1.07, the yearly growth multiplier.
  3. 3
    Raise it to the number of years. 1.07^10 ≈ 1.96715, the growth factor over 10 years.
  4. 4
    Multiply by the present amount. $5,000 × 1.96715 ≈ $9,835.76 — the future value FV.
  5. 5
    Subtract the start for total growth. $9,835.76 − $5,000 = $4,835.76 earned from compounding.

Growth factor (1 + r)^n

Multiply your present amount by the factor to get its future value. A factor of 2.00 means the sum has doubled.

Years (n)4%7%10%
51.2171.4031.611
101.4801.9672.594
202.1913.8706.727
303.2437.61217.449

Reading the results

Compounding, not adding. Each year’s return is earned on the whole balance — original sum plus everything already gained — so the growth factor climbs faster the longer you wait. At 10% the factor is 1.611 after 5 years but 17.449 after 30: more than ten times as much for six times the wait.

A single sum, not a savings plan. This calculator grows one lump sum you already have. It does not add monthly deposits. If you plan to keep paying money in over time, use the compound interest calculator, which layers regular contributions on top of the starting balance. To find the yearly rate implied by a known start and end value instead, use the CAGR calculator.

What is the difference between future value and present value?
They are inverses. Future value grows a sum you have today forward in time — FV = PV × (1 + r)^n. Present value discounts a future amount back to today by dividing instead — PV = FV ÷ (1 + r)^n. One asks what today’s money becomes; the other asks what tomorrow’s money is worth now.
Does this include monthly contributions?
No. This tool grows a single lump sum only. If you plan to add money regularly — say a fixed deposit every month — use the compound interest calculator, which combines a starting balance with ongoing contributions.
What does the compounding setting change?
It sets how often interest is added within each year. Annual applies the full rate once a year; monthly splits the rate into twelve smaller steps that each earn on the last. Monthly compounding grows slightly faster because gains start earning sooner.
Should I enter the rate as a percent or a decimal?
Enter the percent, such as 7. The tool divides by 100 to get the decimal r = 0.07 used in the formula, so you never have to convert it yourself.
Why does the future value grow so much faster over long periods?
Because returns compound on returns. Each year builds on a larger base than the one before, so the curve bends upward rather than rising in a straight line. At 7%, $5,000 becomes about $9,836 after 10 years but roughly $38,061 after 30 — far more than three times the gain.
What rate should I use?
Use a realistic expected annual return for the account. Cash savings might be 3%–5%, while a long-term stock index fund is often modeled around 6%–8% before inflation. The future value is only as reliable as the rate you assume, so treat the result as a projection, not a promise.