Question 1

What is future value (FV)?

Accepted Answer

Future value is what a present sum of money (or a series of contributions) will be worth at a specific date in the future, given an assumed interest or growth rate and compounding frequency. The formula is FV = PV × (1 + r/n)^(n·t) for a lump sum.

Question 2

How does compounding frequency affect FV?

Accepted Answer

The more often interest is compounded, the faster your money grows. Monthly compounding produces more interest than annual compounding at the same nominal rate, because interest is earned on interest more frequently.

Question 3

Does this calculator include inflation?

Accepted Answer

Optional. Toggle inflation on to see both the nominal future value and the real (inflation-adjusted) value in today's purchasing power. The default rate is 3% per year, which is a long-term average for many economies.

Question 4

Can I model regular monthly contributions?

Accepted Answer

Yes. Enter a recurring contribution (PMT) and choose whether you contribute at the beginning or end of each period. The calculator combines the lump-sum growth with the future value of the annuity.