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Future Value (FV) Calculator

Calculate future value (FV) from present value, annual rate and years using compound interest. Supports compounding frequency and periodic contributions, showing investment gain and effective annual rate at a glance.

Input

$
%
yr
Compounding frequency
$

Result

Future value (3% per year, 20 years)

$1,806,111.23

Present value (principal)

$1,000,000.00

Gain (investment return)

$806,111.23

Effective annual rate

3 %

How it works

  • Future value (FV) is the future amount of a principal (present value, PV) grown with compound interest, with the basic formula FV = PV × (1 + r)^n (r is the annual rate, n the number of years).
  • It uses the number of compounding periods per year, m, based on the compounding frequency: FV = PV × (1 + r/m)^(m×n). Annual, semiannual, quarterly and monthly are supported.
  • When there are periodic contributions, the future value of an ordinary annuity FV = PMT × [(1 + i)^(m×n) − 1] ÷ i (i = r/m, or PMT × m×n when i = 0) is added.
  • The gain (investment return) is the future value minus the total invested (present value plus total contributions); it grows larger with longer periods thanks to compounding.
  • The effective annual rate is (1 + r/m)^m − 1, and is slightly higher than the nominal annual rate when compounding is more frequent. Rates are shown to about 6 decimal places.
  • Results are estimates and do not account for taxes, fees or inflation. They do not guarantee investment returns; make investment decisions at your own discretion.