Future Value Calculator
Enter your starting amount, expected return rate, any regular monthly additions, and your time horizon. The calculator shows the future value year by year, split between what you contributed and what the market earned for you.
What Is Future Value?
Future value (FV) is how much a current sum of money will be worth at a specified point in the future, given a certain rate of return. It's the fundamental concept behind retirement planning, college savings funds, and any long-term financial goal.
- PV
- Present value (your current investment)
- PMT
- Regular payment (monthly contribution)
- r
- Annual rate (decimal)
- n
- Compounding periods per year
- t
- Years
Future Value of Common Investment Scenarios
| Scenario | Starting | Monthly | Rate | Years | Future Value |
|---|---|---|---|---|---|
| Emergency fund | $1,000 | $200 | 4.8% | 3 | $8,882 |
| College savings (529) | $5,000 | $300 | 6% | 18 | $130,907 |
| Early retirement | $10,000 | $800 | 8% | 30 | $1,301,342 |
| Traditional retirement | $10,000 | $500 | 7% | 35 | $1,016,640 |
| Wealth building | $50,000 | $1,000 | 9% | 25 | $1,591,653 |
Present Value vs Future Value
Present value (PV) is what a future sum is worth today, discounting for the time value of money. Future value (FV) is the reverse — what today's money will grow to. They are two sides of the same formula:
- FV answers: "I have $10,000 now. What will it be worth in 20 years?"
- PV answers: "I need $500,000 in 20 years. What do I need to invest today?"
To find how much to invest now (PV) to reach a goal (FV): PV = FV / (1 + r/n)^(nt). To have $500,000 in 20 years at 7% monthly: PV = $500,000 / (1.00583)^240 ≈ $123,374 today, assuming no additional contributions.
Historical Rate of Return by Asset Class
| Asset Class | Historical Avg. Annual Return | Notes |
|---|---|---|
| S&P 500 (stocks) | ~10% nominal, ~7% real | Before inflation adjustment |
| US Total Bond Market | ~4–5% | Lower volatility |
| 60/40 Portfolio | ~7–8% | Balanced stocks/bonds |
| Real Estate (REITs) | ~9–10% | Including dividends |
| High-Yield Savings | ~4–5% (current) | FDIC insured, rate varies |
| Inflation (CPI) | ~3% long-term | Reduces real purchasing power |