Future value answers one question: what will a sum of money be worth later, given a rate and time? This calculator runs the standard time-value-of-money formula — a present-value lump sum plus recurring payments, compounding at your chosen rate and frequency — the same math behind a financial calculator's PV/PMT/N/I/Y/FV keys, useful for savings goals, lease payments, or coursework.
Quick answer: Present value + periodic payment + rate + time → future value, using the standard time-value-of-money (TVM) formula financial calculators use.
FV = PV × (1 + i)^N + PMT × [((1 + i)^N − 1) / i] × (1 + i, if annuity due) PV = present value PMT = periodic payment i = periodic rate = annual rate / periods per year N = total periods = periods per year × years
Assumptions
Future value ≈ $41,873 — $9,097 from the initial $5,000 growing on its own, $32,776 from the $200/month contributions.
Future value ≈ $42,037 — about $164 more than the ordinary-annuity version, because every payment earns one extra month of interest.
Future value (FV) is what a sum of money today, plus any planned periodic payments, will grow to at a future date given an assumed interest/growth rate. It's the mirror image of present value (PV), which asks the reverse question: what is a future sum worth today? Together with PMT (payment), N (number of periods), and I/Y (rate per period), FV is one of the five core variables in time-value-of-money (TVM) math.
An ordinary annuity assumes payments happen at the END of each period (typical for most savings and loan payments) — the first payment doesn't earn interest for that period. An annuity due assumes payments happen at the START of each period (typical for rent and lease payments) — every payment earns one extra period of interest, so the future value is always slightly higher for the same inputs.
This calculator uses the common simplification where payment frequency equals compounding frequency (e.g., monthly payments compound monthly) — the same assumption most financial calculators default to. More frequent compounding at the same annual rate produces a modestly higher future value, since each period's growth compounds sooner.
A compound interest calculator (like ours) is purpose-built for one scenario: investment growth with monthly contributions. This Future Value calculator is the general TVM formula — it supports quarterly/semiannual/annual payment schedules and the ordinary-vs-due timing distinction, which matters for scenarios beyond monthly investing, like projecting the future value of a lease or a savings goal funded a few times a year.
Yes — the FV formula is agnostic to whether the cash flow is money you're saving or money you're paying. Setting 'payment timing' to 'start of period' models a typical lease structure (the classic annuity-due case). This calculator is educational; for an actual loan payment, use our amortization-specific calculators, which solve for payment given a target balance rather than the reverse.