Future Value Calculator

How Future Value Is Calculated

This calculator projects the future value of a lump sum plus a stream of regular monthly contributions. Your initial amount is compounded at the selected frequency, and each monthly contribution is assumed to be added at the end of the month and then grows for whatever time remains. Because most people who set up recurring contributions do so through automatic monthly transfers, monthly contributions are treated as a fixed monthly amount regardless of which compounding frequency you select for the underlying rate.

Why Compounding Frequency Matters Less Than You'd Think

Switching from annual to monthly compounding raises your effective return slightly, but the bigger driver of your final balance is almost always the rate itself and how long you stay invested. A 1% higher annual rate sustained over 20 years typically outweighs any difference between monthly and daily compounding. If you want to see how a single up-front sum grows on its own, try the compound interest calculator; if you're working backward from a savings goal to figure out how much to set aside, the savings calculator is a better fit.

A Common Pitfall: Ignoring Inflation

The future value shown here is in nominal dollars — it doesn't account for inflation eroding purchasing power over time. When projecting decades into the future, especially for retirement planning, consider running the numbers through the inflation calculator as well so you understand what your projected balance will actually be worth.