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Future Value and Present Value Calculator
See what a lump sum plus regular deposits will be worth in the future, or work backwards to find what a future amount is worth in today's money.
Formulas
Future value of a lump sum: FV = PV × (1 + r)n
Future value of regular deposits: FV = PMT × ((1 + r)n − 1) ÷ r
Present value: PV = FV ÷ (1 + r)n
Here r is the rate per period and n is the number of periods. With monthly deposits the calculator uses monthly periods: r = yearly rate ÷ 12 and n = years × 12.
Examples
- Future value: $10,000 today plus $200 a month for 20 years at 6% (compounded monthly) grows to about $125,510. You put in $58,000; the rest is growth.
- Present value: a promise of $50,000 in 10 years, discounted at 5% a year, is worth about $30,696 today. If someone offers you $35,000 now instead, the cash today is the better deal at that rate.
Where this is useful
Comparing a lump-sum payout with an annuity or pension, valuing a settlement or lottery prize, deciding whether to prepay a debt, or checking whether an investment's promised payoff beats what you could earn elsewhere.
Frequently asked questions
What is future value?
The amount money will grow to by a future date at a given rate of return. $10,000 at 6% a year for 20 years grows to about $32,071 with yearly compounding.
What is present value?
What a future amount is worth today, given the return you could earn in the meantime. $50,000 received in 10 years is worth about $30,696 today at a 5% discount rate.
What discount rate should I use?
Use the return you could realistically earn elsewhere with similar risk: a savings or Treasury rate for safe money, or around 6% to 8% for long-term stock investments.