How to use the Future Value Calculator
- Enter the amount you have today.
- Enter the annual nominal rate.
- Set the number of years.
- Set compounds per year — 1 annual, 4 quarterly, 12 monthly, 365 daily.
How the calculation works
Compounding frequency raises the effective rate above the nominal one, since interest starts earning interest sooner. The gain is steep from annual to monthly and then flattens: monthly to daily on a 6% nominal rate adds only about two basis points of effective yield.
The effective annual rate shown is the number to use when comparing products with different compounding conventions. A 5.9% monthly-compounded account beats a 6.0% annually-compounded one, which nominal rates alone will not tell you.
The multiple-of-principal output is a quick sanity check against the rule of 72: at 6% money should roughly double in twelve years, so a multiple near 2 at that horizon confirms the inputs are sensible.
FV = PV(1 + r/m)^(m×t); EAR = (1 + r/m)^m − 1Source: Truth in Savings Act (12 CFR Part 1030) annual percentage yield calculation rules.
Worked example
$25,000 at 6% compounded monthly for 15 years.
- Monthly rate 0.5%, over 180 periods.
- 1.005¹⁸⁰ ≈ 2.4541.
About $61,350, an effective annual rate of 6.17% and roughly 2.45× the starting amount.
Frequently asked questions
Does continuous compounding matter?+
Rarely in practice. At 6%, continuous gives 6.18% effective versus 6.17% monthly.
How do I include deposits?+
Use the investment or annuity calculator; this one values a single lump sum.
Is this before or after tax?+
Before. In a taxable account, use your after-tax rate of return.
Last reviewed September 1, 2026. We review this page whenever the underlying formula, tax year, published rate or standard changes.