Future Value Calculator
Future value of an annuity projects what a stream of equal contributions becomes. Because every deposit compounds for a different length of time, this is the formula retirement plans actually depend on — not the lump-sum one.
Future value
$405,035.85
- Total contributed
- $150,000.00
- Investment growth
- $255,035.85
Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.
The formula this calculator uses
FV = PMT x (((1 + r)^n - 1) / r)
- FV
- Future value of the whole contribution stream
- PMT
- Amount contributed each period
- r
- Interest rate per period as a decimal
- n
- Total number of contributions
How to check the result by hand
- 1
Fix the contribution amount and frequency
Determine PMT and how often it repeats. A monthly plan means monthly periods, so everything downstream must be monthly — including the rate.
- 2
Convert the annual rate to the period rate
Divide by 12 for monthly contributions, by 4 for quarterly, by 1 for annual. A 7% annual return becomes r = 0.07 / 12 = 0.0058333 monthly.
- 3
Count the total number of contributions
Multiply periods per year by the number of years: 12 x 25 = 300. This must be expressed in the same unit as the rate, or the result will be wrong by orders of magnitude.
- 4
Evaluate the accumulation factor
Compute ((1 + r)^n - 1) / r. With r = 0.0058333 and n = 300 the factor is about 810.06, meaning every dollar contributed monthly is worth roughly 810 dollars at the end.
- 5
Multiply by the contribution
FV = PMT x factor. $500 x 810.0717 = $405,035.85. If contributions begin each period rather than end, multiply once more by (1 + r) to get $407,398.56.
For worked examples, common mistakes and the limits of this formula, read the full How To Calculate Future Value page.