Calculate how much your investment will be worth in the future with compound interest. Perfect for retirement planning, savings goals, and investment analysis.
Present Value: Enter your initial investment amount or current savings.
Interest Rate: Enter the expected annual interest rate as a percentage.
Time Period: Enter the number of years you plan to invest.
Compounding: Choose how often interest is compounded (monthly is most common).
Monthly Payments: Add regular monthly contributions (optional).
Future Value (FV) is the value of a current asset at a specified date in the future based on an assumed rate of growth. It's a fundamental concept in finance that helps investors understand how much their money will be worth after earning interest over time.
For compound interest: FV = PV × (1 + r/n)^(nt)
Where:
Simple interest is calculated only on the principal amount, while compound interest is calculated on both the principal and previously earned interest. This calculator uses compound interest, which is more realistic for most investments.
More frequent compounding generally results in higher returns. Monthly compounding is common for savings accounts, while daily compounding maximizes growth. The difference becomes more significant with larger amounts and longer time periods.
Use realistic rates based on your investment type: savings accounts (1-2%), bonds (3-5%), stock market average (7-10%), or high-growth investments (10%+). Conservative estimates are recommended for financial planning.
This calculator shows nominal returns. For real purchasing power, subtract the expected inflation rate (typically 2-3%) from your interest rate to get inflation-adjusted returns.