Future Value Calculator – Plan Your Financial Future

What is a Future Value Calculator?

A Future Value Calculator helps you estimate the value of money or investments in the future by factoring in interest rates, time periods, and contributions.

It’s useful for:

• Estimating the future value of savings or investments.

• Planning for retirement or long-term goals.

• Comparing different investment options.

• Setting financial goals like buying a house, a car, or building an education fund.

Future Value Formula

The standard formula is:

$$FV=PV\times (1+r{)}^n$$

Where:

• FV = Future Value

• PV = Present Value (initial amount)

• r = Interest rate per period

• n = Number of periods

If you add regular contributions (PMT), the formula becomes:

$$FV = PV \times (1 + r)^n + PMT \times \frac{((1 + r)^n – 1)}{r}$$

How to Use the Future Value Calculator

1. Enter your initial investment or savings (Present Value).

2. Input the annual interest rate (e.g., 5%, 7%, 10%).

3. Select the number of years (investment duration).

4. Add a contribution amount if you plan to invest regularly.

5. Click Calculate → see the future value instantly.

Example

• Initial investment: $10,000

• Annual interest rate: 6%

• Time: 10 years

$$FV=10,000\times (1.06{)}^{10}=17,908USD$$

👉 After 10 years, your money grows to $17,908.

If you also invest $100/month:

$$FV\approx 10,000\times (1.06{)}^{10}+100\times \frac{({1.06}^{10}-1)}{0.06}=34,868USD$$

Benefits of Using a Future Value Calculator

• Save time – no need for manual calculations.
• Understand the power of compound interest.
• Plan long-term financial goals effectively.
• Compare different investment scenarios with ease.