What rate of return should I assume?

It depends on the investment. Savings accounts earn far less than stocks, and no rate is guaranteed. Use a conservative estimate below what you hope to earn — planning with a modest rate means you are less likely to be disappointed by the actual result.

Does this calculator account for inflation?

No. It shows the nominal future value — the dollar amount you will have, not what those dollars will buy. Inflation erodes purchasing power, so the real (inflation-adjusted) value will be lower. To estimate real value, subtract your expected inflation rate from the nominal rate before entering it.

What about taxes and fees?

They are not included. Taxes on gains and annual management fees both reduce your actual return. A 1% annual fee is roughly the same as a 1 percentage point lower return — over decades, that small drag costs a lot, so factor it into the rate you enter.

Why annual contributions instead of monthly?

This calculator uses one contribution per year, added at the end of each year, to keep the math simple. If you want to model monthly deposits, use a compound interest calculator with a monthly period instead — the results will differ because more frequent deposits start compounding sooner.

Can the future value be less than the present value?

Only if the rate of return is negative — meaning the investment loses value instead of growing. This calculator treats any negative input as zero, so it will never show a future value below what you put in.

Future Value Calculator

Project what your money will be worth. Grow a lump sum with compound interest, add monthly contributions, choose your compounding frequency — and see the inflation-adjusted purchasing power of the result.

Present value / lump sum ($)

Monthly contribution ($)

Annual interest rate (%)

Years

Compounding per year

Advanced options

Expected inflation (%/year) — optional

Shows what the future value buys in today's dollars.

Savings goal ($) — optional

Set a goal to see how many years and months it takes to get there.

How future value works

Future value has two parts: your lump sum compounding on its own, and your stream of monthly contributions compounding as an annuity. The lump sum uses FV = P(1+r/n)^nt; the contributions use the future value of an annuity formula with a monthly rate. Adding them gives the total.

Compounding frequency matters most for the lump sum. Monthly contributions are always modeled with a monthly rate (annual ÷ 12), which matches how most savings plans actually credit interest.

Nominal vs real value

The headline number is nominal — the raw dollar count. Dividing by (1+inflation)^years gives the real value: what it buys in today's dollars. A $500,000 balance in 25 years at 3% inflation spends like about $239,000 today. Both numbers matter: nominal for account statements, real for planning.

Frequently Asked Questions

What's the difference between this and the compound interest calculator?

This one separates a one-time lump sum from ongoing contributions and lets you set compounding frequency and inflation. Use it when the scenario has both a starting balance and regular deposits.

Are contributions assumed at the start or end of the month?

End of the month. Start-of-month contributions would earn about one extra month of interest each — a small upward difference of roughly (rate ÷ 12) on the annuity portion.

Why does compounding frequency barely change my result?

Because the monthly contributions dominate most plans and always compound monthly. Frequency matters more for a large lump sum with no contributions — daily vs annual compounding on $100,000 at 7% for 20 years differs by about $2,600.

Should I use nominal or real returns for retirement planning?

Real returns keep you honest. If you expect 7% nominal returns and 3% inflation, your real return is about 3.9% — enter 3% inflation above to see both figures side by side.

Does this include taxes or fees?

No. Investment fees of even 1% per year compound against you just as returns compound for you — a 1% fee over 30 years can erase roughly a quarter of the final balance. Enter your expected return net of fees.

Future Value Calculator

How future value works

Nominal vs real value

Frequently Asked Questions

Embed this calculator