Future Value Calculator Formula

Understand the math behind the future value calculator. Each variable explained with a worked example.

Use the Future Value Calculator

Formulas Used

Future Value

future_value = present_value * pow(1 + annual_rate / 100, years)

Total Interest Earned

total_interest = present_value * pow(1 + annual_rate / 100, years) - present_value

Growth Multiple

growth_factor = pow(1 + annual_rate / 100, years)

Variables

VariableDescriptionDefault
present_valuePresent Value(USD)50000
annual_rateAnnual Interest Rate(%)6
yearsNumber of Years(years)10

How It Works

How to Calculate Future Value

Future value tells you what a sum of money today will be worth at a future date, given a specified rate of return.

Formula

FV = PV * (1 + r)^n

Where:

  • FV = Future value
  • PV = Present value
  • r = Annual interest rate (as decimal)
  • n = Number of years

    • Worked Example

    You have $50,000 and want to know its value in 10 years at 6% annual return.

    present_value = 50000annual_rate = 6years = 10
    1. 01FV = $50,000 * (1 + 0.06)^10
    2. 02FV = $50,000 * (1.06)^10
    3. 03FV = $50,000 * 1.7908
    4. 04Future Value = $89,542.38
    5. 05Total interest earned: $89,542.38 - $50,000 = $39,542.38

    Ready to run the numbers?

    Open Future Value Calculator