Investment Calculator
Future Value (Compound Interest) Calculator
Calculate the future value of your investments with compound interest and annual additions.
Investment Details
Results
Future Value
$1,829,259
Investment Summary
Disclaimer: Please note that these calculators are for illustrations only and do not represent actual returns.
Stock Market does not have a fixed rate of return and it is not possible to predict the rate of return.
What Is a Future Value (Compound Interest) Calculator?
A Future Value Calculator helps you estimate the value of your investments at a future date, accounting for compound interest and annual additions. It shows how your money grows over time, helping you plan for long-term financial goals like retirement, education, or wealth building.
How Is Future Value Calculated?
For a lump sum with no further additions:
FV = P × (1 + r)^N
Where P is the principal, r is the annual growth rate, and N is the number of years. If you also add a fixed amount every year, this calculator adds the future value of those contributions as a growing annuity on top of the lump-sum result — which is why increasing your annual contribution has a compounding effect of its own, not just a linear one, over a long enough horizon.
How to Use This Calculator
- Enter your current principal amount (initial investment).
- Add any annual contributions you plan to make.
- Set the number of years you want your money to grow.
- Enter the expected annual growth rate (rate of return).
- The calculator will show your future value and investment summary.
Understanding Compound Interest
Power of Compounding
Compound interest earns returns on both your principal and previously earned returns. This creates exponential growth over time.
Regular Contributions
Adding to your investments regularly (annual additions) significantly accelerates wealth accumulation through the power of compounding.
Time Horizon
The longer your investment horizon, the more time your money has to compound and grow. Starting early is one of the most effective wealth-building strategies.
Rate of Return
Higher returns lead to faster growth, but they come with higher risk. Find a balance that matches your risk tolerance and financial goals.
Frequently Asked Questions
What is the difference between simple and compound interest?
Simple interest is calculated only on the principal amount. Compound interest is calculated on the principal plus accumulated interest, leading to exponential growth.
How often does compound interest compound?
In this calculator, we assume annual compounding. Real-world investments may compound daily, monthly, quarterly, or annually. More frequent compounding results in slightly higher returns.
What is a good rate of return for long-term investments?
Historically, stock markets have provided positive long-term returns, while bonds and fixed-income investments generally offer lower but more stable returns. Actual results vary by country, market conditions, and investment type. Your ideal rate depends on your risk tolerance and investment goals.
Does this account for inflation?
No — the future value shown is in nominal terms. To see what that amount is worth in today's purchasing power, discount it by your assumed inflation rate separately, or use the Inflation Calculator alongside this one.