Future Value Calculator
Projects what a current investment or savings will be worth at a future date
The current amount of money you have or plan to invest
The expected annual rate of return
How many years the money will be invested
How often interest is compounded per year
Enter present value, rate, and years to calculate future value
The total interest gained over the investment period
How many times your investment has grown
Frequently Asked Questions
What is future value?
Future value is the amount an investment will grow to over a given period at a specified rate of return. It shows what your money today will be worth in the future. The formula accounts for the compounding effect of reinvested earnings.
How does compounding affect future value?
More frequent compounding increases the future value because interest earns interest more often. Monthly compounding produces a higher future value than annual compounding at the same nominal rate. The difference compounds over longer time horizons.
What is the rule of 72?
The rule of 72 is a shortcut to estimate how long it takes for an investment to double. Divide 72 by the annual interest rate. At 8% interest, your money doubles in roughly 9 years (72 / 8 = 9). It is an approximation that works best for rates between 6% and 10%.
What is growth factor?
Growth factor is the ratio of future value to present value. A growth factor of 2.0 means your money doubled. It equals (1 + r/n) raised to the power of (n x t), where r is the rate, n is compounding frequency, and t is time in years.
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