What is future value?

Future value (FV) is what an amount invested today grows to at a given interest rate over time, thanks to compounding. It answers the question: what will my money be worth later?

Why does starting early matter?

Compounding grows exponentially, so most of the growth happens in the later years. Starting even 5 years earlier can dramatically increase the final value.

Future Value Calculator

Compound a single amount into the future.

Present Amount

Present Value ($)

Annual Interest Rate (%)

Time Period (years)

yrs

Compounding

Future Value

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Interest Earned

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Effective Annual Rate

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The power of compounding

$5,00,000 at 7% for 10 years grows to about $10,00,000 — doubling without any additional contribution. The interest earned column shows the reward for letting compounding work.

Future Value FAQ

What is the rule of 72?▶

Divide 72 by your annual rate to estimate how long money takes to double. At 7%, it doubles roughly every 10.3 years — matching this example.

Does inflation reduce future value?▶

Yes — future value is nominal. To see real purchasing power, subtract inflation from your rate (e.g., 7% return minus 6% inflation is about 1% real growth).