Future Value Calculator: Grow a Lump Sum and Regular Deposits
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The future value of a lump sum is the amount times (1 + rate)^years. $10,000 at 7% for 20 years, compounded yearly, becomes about $38,697.
Starting with $10,000 and adding $500 a month at 7.00% a year, you would have about $300,851 after 20 years. You put in $130,000 and the rest, $170,851, is growth.
Year-by-year
| Year | Start | Deposits | Growth | End |
|---|---|---|---|---|
| 1 | $10,000 | $6,000 | $919 | $16,919 |
| 2 | $16,919 | $6,000 | $1,419 | $24,339 |
| 3 | $24,339 | $6,000 | $1,956 | $32,294 |
| 4 | $32,294 | $6,000 | $2,531 | $40,825 |
| 5 | $40,825 | $6,000 | $3,148 | $49,973 |
| 6 | $49,973 | $6,000 | $3,809 | $59,782 |
| 7 | $59,782 | $6,000 | $4,518 | $70,299 |
| 8 | $70,299 | $6,000 | $5,278 | $81,578 |
| 9 | $81,578 | $6,000 | $6,094 | $93,671 |
| 10 | $93,671 | $6,000 | $6,968 | $106,639 |
| 11 | $106,639 | $6,000 | $7,905 | $120,544 |
| 12 | $120,544 | $6,000 | $8,910 | $135,455 |
Show the steps
- Rate per period: 7.000% ÷ 12 = 0.58333%. Number of periods: 20 × 12 = 240.
- Starting amount grows to $10,000.00 × (1 + r)^n = $40,387.39.
- Deposits grow to $500.00 × ((1 + r)^n − 1) ÷ r = $260,463.33.
Future value with regular deposits
FV = PV × (1 + r)^n + PMT × ((1 + r)^n − 1) ÷ r
r = annual rate ÷ periods per year, n = total periods
For deposits at the start of each period, multiply the second term by (1 + r)
- Assumes a steady return. Real investment returns vary from year to year.
- Taxes, fees and inflation are not included. Inflation lowers what the money can buy.
Estimates for planning and learning, not financial, tax, legal or medical advice. Check figures with your lender, tax preparer or doctor before you act.
About this calculator
Future value tells you what money today will be worth later if it earns a steady return. It combines two parts: the growth of the amount you start with, and the growth of each deposit you add along the way.
This calculator handles both, lets you choose how often interest compounds, and shows how much of the final balance comes from your deposits and how much from growth.
How to use it
- Enter your starting amount and the amount you will deposit each period.
- Enter the yearly rate of return and the number of years.
- Choose how often interest compounds. Deposits are made at the same frequency.
- Open the options to deposit at the start of each period or to raise deposits each year.
- Read the future value, the split between deposits and growth, and the table.
Why starting early matters
Growth is earned on earlier growth, so time does more than the deposits do. At 7%, money roughly doubles every 10 years. A deposit made 30 years before you need it grows nearly eightfold.
Worked example
You start with $10,000 and add $500 a month at 7%, compounded monthly, for 20 years. The starting amount grows to about $40,387, and the monthly deposits grow to about $260,463. The total is about $300,851, of which $130,000 is money you put in.
Sources
Quick check: test yourself
$1,000 grows 10% a year for 2 years, compounded yearly. What is the value?
Correct answer: $1,210. $1,000 × 1.1 × 1.1 = $1,210.
Which gives more at the end: deposits at the start or at the end of each period?
Correct answer: Start of each period. Money deposited earlier earns one extra period of growth.
In the future value formula, what does n stand for?
Correct answer: Number of compounding periods. n is years multiplied by compounding periods per year.
Pick an answer for each question.
Common questions
What is future value?
The value an amount of money will have at a later date, given a rate of return.
How do I calculate future value?
Multiply the starting amount by (1 + r) raised to the number of periods, and add the growth of each deposit.
What is the difference between future value and present value?
Future value looks forward from today. Present value looks backward from a future amount.
Does compounding more often help?
Slightly. Monthly compounding earns a little more than yearly, but the rate and time matter much more.
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