Calculate the future value of current investments or regular deposits with compound interest and varying contribution schedules.
Future Value Calculator estimates an investment's ending balance from its starting value, annual interest rate, time horizon, compounding frequency, and any scheduled deposits. It compounds the opening balance and treats each later contribution according to how long that money remains invested. The most common source of confusion is timing: contribution frequency and compounding frequency describe different events. Monthly deposits do not necessarily imply monthly compounding, and deposits made earlier have more time to earn interest than deposits made near the end.
A concrete input and expected output from the current implementation.
Input
Starting investment: $1,000 Annual interest rate: 5% Investment term: 2 years Compounding: annually Regular contribution: $0
Expected output
Future value: $1,102.50
After one year, $1,000 grows to $1,050. Applying 5% for the second year produces $1,050 x 1.05 = $1,102.50.
For the opening investment, each compounding period applies the periodic rate to the accumulated balance. With annual rate r, m compounding periods per year, and t years, the lump-sum component is P x (1 + r/m)^(m x t). The percentage rate must be converted to a decimal before it enters that expression.
Regular deposits are separate cash flows rather than part of the opening principal. Each deposit earns compound interest only from its scheduled date through the end of the term. Changing the deposit cadence can therefore change the result even when contributed totals are similar. The final value combines the accumulated opening balance with the accumulated value of those deposits.
The stated annual rate is divided across the selected number of compounding periods, and earned interest joins the balance after each period. More frequent compounding therefore applies later interest to previously credited interest more often. The difference may be small for short terms or low rates, but it increases with the rate, principal, and time horizon.
No. It shows the mathematical result of the values and schedule entered. Real investment returns can change from period to period, and actual balances can also be affected by fees, taxes, missed contributions, withdrawals, and inflation. Use the result for scenario planning, and compare several plausible rates rather than treating one projection as a forecast.
The example and behavioral notes were checked against the browser implementation. Standards and primary references below define the relevant format, formula, or platform behavior.
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