Future Value Calculator

Use this calculator to determine the future value of an investment which can include an initial deposit and a stream of periodic deposits.

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Definitions

Initial deposit amount
Amount of your initial deposit, or account balance, as of the present value date.

Start date
Date your investment or account was be worth the entered initial deposit amount. We assume that this is also the date of the first periodic payment if deposits are made at the beginning of a period.
End date
Day to calculate the future value.

Periodic deposit (withdrawal)
The amount that you plan on adding to this savings or investment each period.

Deposit frequency
The frequency of your periodic deposits. Periods options include weekly, bi-weekly, monthly, quarterly and semi-annually and annually. You can choose to make deposits at the beginning or the end of each period.

Rate of return
The rate of return for this investment or savings account. The actual rate of return is largely dependent on the type of investments you select. For example, from December 1999 to December 2009, the average annual compounded rate of return for the S&P 500 was -0.6%, including reinvestment of dividends. From January 1970 to December 2009, the average annual compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 10.1% (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a bank may pay as little as 1% or less but carry significantly lower risk of loss of principal balances.

It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.

Compounding method
This calculator allows you to choose the frequency that your investment's interest or income is added to your account. The more frequently this occurs, the sooner your accumulated earnings will generate additional earnings. For stock and mutual fund investments, you should usually choose 'Annual'. For savings accounts and CDs, all of the options are valid, although you will need to check with your financial institution to find out how often interest is being compounded on your particular investment.