Find the future value of money today, or the present value of a future sum.
Calculated instantly in your browser.
How do you calculate present and future value of money?
Future value: FV = PV × (1 + r⁄m)^(n·m). Present value: PV = FV ÷ (1 + r⁄m)^(n·m), where r is the annual rate, n the years and m the compounding periods per year. Future value compounds an amount forward; present value discounts it back. For example, $1,000 at 5% compounded annually grows to about $1,628.89 in 10 years.
Understanding your result
A dollar today is worth more than a dollar later because it can earn interest. Future value compounds an amount forward; present value discounts a future amount back. Compounding more frequently increases the future value slightly.
Formula and method
Future value: FV = PV × (1 + r⁄m)^(n·m). Present value: PV = FV ÷ (1 + r⁄m)^(n·m), where r is the annual rate, n the years and m the compounding periods per year.
Assumptions and limitations
This assumes a single fixed rate and constant compounding over the whole period, with no fees, taxes or inflation. Real returns vary year to year and are not guaranteed, so a projected future value is an illustration rather than a forecast. Use it to understand the maths, not as investment advice.
Worked example
$1,000 at 5% compounded annually grows to about $1,628.89 in 10 years.
How to use this tool
- Choose future or present value.
- Enter the amount, rate and number of years.
- Pick the compounding frequency and read the result.
Common mistakes to avoid
- Mixing up the annual rate with the per-period rate.
- Entering the future amount when calculating future value (use the present amount).
About the Present & Future Value Calculator
The Present & Future Value Calculator handles the time value of money. Grow an amount today forward to its future value, or discount a future amount back to what it is worth today, at any interest rate and compounding frequency.
Who should use this tool
Savers, investors, finance students and anyone comparing money across time.
Benefits
- Future value and present value in one tool.
- Annual, semi-annual, quarterly or monthly compounding.
- Shows total interest earned or discounted.
- Growth chart over the period.
Practical use cases
- Seeing what $1,000 becomes in 10 years.
- Valuing a future payout in today’s money.
- Comparing offers paid at different times.
Frequently asked questions
What is the time value of money?
The principle that money available now is worth more than the same amount in the future, because it can be invested to earn a return.
Does compounding frequency matter?
Yes — more frequent compounding (monthly vs annually) earns slightly more interest for the same nominal rate.
Does this account for inflation?
No. The figures are in nominal terms at the rate you enter. To gauge future purchasing power you would need to discount by an expected inflation rate, which the tool does not apply. A large future value can still buy less than it appears once rising prices are considered.