Future value calculator guide
This calculator projects how much an investment or savings plan may be worth in the future using an initial balance, monthly contributions, annual return, and time period.
How to use it
- Enter the starting amount and monthly contribution.
- Use a conservative annual return assumption.
- Choose the investment period in years.
- Add an annual contribution increase if your savings are likely to grow with income.
Calculation method
The calculator compounds monthly and increases contributions annually if you enter a contribution growth rate.
Example scenario
An investor starting with $10,000 and adding $500 per month for 20 years at a 7% annual return may end with far more than the amount personally contributed because compounding growth becomes larger over time.
What to watch
Future returns are not guaranteed. Use several return assumptions to see a range instead of relying on one forecast.
FAQ
Is this the same as compound interest?
It is similar, but this version emphasizes recurring monthly contributions and long-term portfolio growth.
Should I use nominal or real return?
Use nominal return for raw dollar projections and real return if you want inflation-adjusted purchasing power.
Why does growth accelerate later?
As the balance gets larger, returns are earned on both contributions and previous returns.