Finance
Calculator for Future Value
Work out how one lump sum go grow with compound interest: future value, interest earned and growth multiple from present value, rate, years and how often interest compound.
Add to workspaceYour numbers
Result dey update as you type; no Calculate button dey. All calculation dey run inside your browser.
Value for future
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Year by year
| After | Value wey e get | Interest wey don gather so far |
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Every row use di same compounding frequency and rate wey you enter. Di final row include your exact planning period.
Formula
Growth factor = (1 + annual rate ÷ compounding periods) raised to (compounding periods × years). Future value = present value × growth factor. Interest wey you earn = future value − present value. Growth factor depend on rate, time and frequency; e still get defined value even if present value na zero. If the period na zero years, growth factor na 1.
Example wey show the calculation
$10,000 with 5% interest wey compound every year for 10 years: future value = $10,000 × 1.0510 = $16,288.95. Interest earned na $16,288.95 − $10,000 = $6,288.95, and growth multiple na 1.63×. After 5 years same sum worth $12,762.82.
Where e fit work and limits
This na single lump sum at fixed rate — no regular deposits or withdrawals. For regular payments, use savings-goal or annuity calculation instead. Rate assumed constant for whole period; real investment returns vary year to year. Taxes, fees, and inflation not included, so result na nominal future amount, no be purchasing power.
Questions wey people dey ask often
How often interest compound dey make big difference?
Yes, but rate and time dey matter more. For the example, monthly compounding go give $16,470.09 instead of $16,288.95, about $181 more over 10 years. Daily compounding go add only small extra on top.
How this one differ from compound interest?
The maths na the same: compound interest na the interest wey gather, while future value na the total. This page dey show both so you no need subtract am yourself.
The rate fit be zero?
Yes. At 0%, future value go equal present value, and no interest go gather.
This one account for inflation?
No. To compare purchasing power, divide the future value by (1 + inflation rate)years, or calculate am after you adjust for inflation.
Wetin about money wey I dey add every month?
We no include dem here. For lump sum plus deposits, you need add the future value of an annuity, using its own formula.
Why small rate differences dey matter plenty?
Na because growth dey compound: the interest for each year go gather its own interest for later years. Over 30 years, 6% instead of 5% on $10,000 go give $57,434.91 instead of $43,219.42.
Other tools wey relate to dis
- Calculator for compound interest — the same growth, shown as interest wey gather year by year
- Calculator for savings target — how much you need save regularly to reach your target
- Calculator for retirement savings — growth over many years, with withdrawals after retirement
Results na estimates; dem no replace advice from qualified professional.