Future Value of Money Calculator to Calculate Future Value of Lump Sum

Future Value of Money Calculator Sign

This calculator will calculate how much a lump sum of money invested today will be worth after a specified number of months or years, given a compounding interest rate and the compounding interval.

Plus, the calculator will also display an annual growth chart so you can see the interest earnings and growth on a year-to-year basis.

Note that if you are interested in calculating the future value of a series of equal cash flows, please visit the Future Value of an Annuity Calculator.

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Future Value of Money Calculator

Calculate the future value of a lump sum given the term, interest rate, and compounding interval.

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Selected Data Record:

A Data Record is a set of calculator entries that are stored in your web browser's Local Storage. If a Data Record is currently selected in the "Data" tab, this line will list the name you gave to that data record. If no data record is selected, or you have no entries stored for this calculator, the line will display "None".

DataData recordData recordSelected data record: None
Lump sum:Lump sum:Lump sum:Lump sum:

Lump sum:

Enter the dollar amount of the lump sum of money you wish to calculate future value for, without the dollar sign and commas.

$
# ofNumber ofNumber of

Number of months/years:

Select either Months or Years and enter the corresponding number of periods.

#
Rate:Interest rate:Compounding interest rate:Compounding interest rate:

Compounding interest rate:

Enter the compounding interest rate to be used for the future value calculations. Please enter as a percentage but without the percent sign (for .06 or 6%, enter 6).

%
Compound:Compound:Compounding frequency:Frequency of interest compounding:

Frequency of interest compounding:

Select the compounding frequency to use in the future value calculations.

FV:Future Value:Future value of lump sum:Future value of lump sum:

Future value of lump sum:

Based on your entries, this is the future value of the lump sum you entered. Note that the lump sum is also the present or discounted value of this future amount.

Interest:Interest:Compound interest earned:Compound interest earned on lump sum:

Compound interest earned on lump sum:

Based on your entries, this is how much compound interest you will earn on the lump sum for the specified number of months or years.

If you would like to save the current entries to the secure online database, tap or click on the Data tab, select "New Data Record", give the data record a name, then tap or click the Save button. To save changes to previously saved entries, simply tap the Save button. Please select and "Clear" any data records you no longer need.

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Help and Tools

Learn

What "Future Value" is and why it's important.

What is "Future Value?"

When you place an amount of money in an account or an investment that earns compounding interest (earns interest on interest paid), future value is the amount to which the original deposit or investment will grow to based on the compounding rate and interval (daily compounding, monthly compounding, etc.), and on the number of months or years.

Because Future Value (FV) is the result of interest being earned on previously earned interest, future value is also referred to as compounding. Therefore, a compounding interest calculator is virtually the same thing as a future value of money calculator.

What are Future Value Calculations Useful For?

Suppose you have a lump sum of money and you have several choices of where to invest or deposit the lump sum. Further suppose that these choices come with different interest rates and compounding intervals. Future value calculations allow you to compare the growth of each option against the growth of all other options.

A second, and more important use of future value calculations, is for determining the financial opportunity costs of spending a lump sum of money on a depreciating asset (value diminishes with time and use) or on an expendable (value is expended upon use or purchase) instead of investing it.

Example of Opportunity Cost Using Future Value

Suppose you are considering spending $5,000 on a vacation. In order to make an informed decision, you need to know and give equal weight to the financial opportunity costs that will come with an expenditure of the $5,000 for an expendable.

If you have at least 30 years until you can retire, and could earn 6%, compounded monthly on the lump sum if you invested it, future value calculations will tell you that the financial opportunity cost of going on vacation will be $25,112.88 (future value of $30,112.88 less the original $5,000). That is how much interest earnings you will be giving up by going on vacation.

Going one step further, you could also determine how much time off from work you could take after 30 years of earning 6% interest. If you take home $15 per hour and work 40-hours per week, this means you could take roughly 50-weeks off from work 30 years from now ($30,112.88 ÷ $600 per week = 50.19 weeks).

Sure, it's true that the above opportunity cost calculation doesn't account for inflation (erosion of buying power) and income taxes. But the question you need to ask yourself is, in 30 years which would I rather have, faded memories of 1-week vacation, or $30,112.88 in savings?

If you still choose to spend the lump sum on the vacation, then at least you made an informed decision.

Adjust Calculator Width:

Move the slider to left and right to adjust the calculator width. Note that the Help and Tools panel will be hidden when the calculator is too wide to fit both on the screen. Moving the slider to the left will bring the instructions and tools panel back into view.

Also note that some calculators will reformat to accommodate the screen size as you make the calculator wider or narrower. If the calculator is narrow, columns of entry rows will be converted to a vertical entry form, whereas a wider calculator will display columns of entry rows, and the entry fields will be smaller in size ... since they will not need to be "thumb friendly".

Show/Hide Popup Keypads:

Select Show or Hide to show or hide the popup keypad icons located next to numeric entry fields. These are generally only needed for mobile devices that don't have decimal points in their numeric keypads. So if you are on a desktop, you may find the calculator to be more user-friendly and less cluttered without them.

Stick/Unstick Tools:

Select Stick or Unstick to stick or unstick the help and tools panel. Selecting "Stick" will keep the panel in view while scrolling the calculator vertically. If you find that annoying, select "Unstick" to keep the panel in a stationary position.

If the tools panel becomes "Unstuck" on its own, try clicking "Unstick" and then "Stick" to re-stick the panel.