How it works
Future value is what money invested today, plus any regular deposits, will be worth after a number of periods at a fixed rate of return.
Deposits made at the beginning of each period (an annuity due) earn one extra period of interest compared with deposits at the end, so they produce a slightly higher result.
Formula
FV = PV(1 + r)^n + PMT × ((1 + r)^n − 1) ÷ r [× (1 + r) if deposits are at the beginning]
Questions people ask
What is the difference between future value and compound interest?
They use the same math. Future value is the general time-value-of-money term; compound interest calculators usually focus on savings with monthly contributions.
What is an annuity due?
A series of payments made at the start of each period, such as rent. Ordinary annuities pay at the end, like most loan payments.
Does future value account for inflation?
No. To see the result in today's buying power, divide by (1 + inflation)^years or use the inflation calculator.