The future value formula
Future value (FV) tells you what a sum of money today will be worth after it grows for a number of years. The formula is FV = PV × (1 + r ÷ 100)years, where PV is the present value, r is the annual growth rate as a percentage, and years is the time horizon. It assumes the rate compounds once per year. Future value is the foundation of long-term planning — it answers how much will this be worth, while present value answers the reverse.
How to use this calculator
Enter the present value (the amount you have today), the expected annual rate of return, and the number of years. The tool returns the future value and how much of it is growth. If you also make regular contributions, use the savings calculator instead, which adds monthly deposits to the lump sum. For a full year-by-year breakdown, the compound interest calculator shows the same growth in steps.
Worked example
Invest $5,000 at 7% for 10 years: FV = 5,000 × (1 + 0.07)10 ≈ $9,835.76, nearly doubling your money with about $4,836 of growth. Time and rate both matter enormously:
| Years | At 5% | At 7% |
|---|---|---|
| 5 | $6,381 | $7,013 |
| 10 | $8,144 | $9,836 |
| 20 | $13,266 | $19,348 |
These figures are an estimate for general information only and are not financial advice; consult a qualified professional before making money decisions. Remember that prices rise too, so compare the result against the inflation calculator.
Frequently asked questions
- What will $5,000 be worth in 10 years at 7%?
- Growing at 7% annually, $5,000 becomes about $9,835.76 after 10 years, an increase of roughly $4,836.
- What is future value?
- Future value is the amount a sum of money today will grow to after a set period at a given rate of return, assuming compounding.
- How is future value different from present value?
- Future value grows money forward in time, while present value discounts a future amount back to today. They use the same factor in opposite directions.
- Does this include regular contributions?
- No. This tool grows a single lump sum. To include monthly deposits, use the savings calculator, which adds a recurring contribution stream.
- What if my rate compounds monthly instead of yearly?
- Monthly compounding gives a slightly higher balance for the same nominal rate. This tool compounds once a year, so use the compound interest calculator when you need to set the compounding frequency yourself.