Future Value Calculator
Calculate the future value of your investments with compound interest
Investment Details
Investment Growth Results
Enter investment details to calculate future value
Understanding Future Value
What is Future Value?
Future Value (FV) is the value of an asset or cash at a specified date in the future, based on an assumed growth rate. The calculation accounts for the time value of money, assuming that a present amount of money can grow and earn interest over time.
Formula:
FV = PV × (1 + r/m)^(m×n)
Where: PV = Present Value, r = Annual Interest Rate, m = Compounding Frequency, n = Number of Years
Power of Compound Interest
Compound interest is the addition of interest to the principal sum, where interest also begins to earn interest. This creates exponential growth over time, making it a powerful tool for wealth building.
- •More frequent compounding = Higher returns
- •Longer time periods = Exponential growth
- •Higher interest rates = Faster accumulation
- •Regular contributions amplify growth
Impact of Compounding Frequency
| Frequency | Periods per Year | Effective Rate (7.5% nominal) | Best For |
|---|---|---|---|
| Annually | 1 | 7.500% | Simple calculations |
| Semiannually | 2 | 7.641% | Bonds, CDs |
| Quarterly | 4 | 7.714% | Some investments |
| Monthly | 12 | 7.763% | Most common |
| Weekly | 52 | 7.784% | High-frequency |
| Daily | 365 | 7.791% | Maximum compounding |
Investment Strategies
Conservative
Lower risk, steady growth
- • 3-5% annual returns
- • Bonds, savings accounts
- • Preserves capital
- • Lower volatility
Moderate
Balanced risk and return
- • 6-8% annual returns
- • Mixed portfolios
- • Index funds, ETFs
- • Medium volatility
Aggressive
Higher risk, higher returns
- • 10%+ annual returns
- • Stocks, crypto
- • Higher volatility
- • Long-term growth