Future Value of a Lump Sum Calculator
Grow a single sum forward at a compound rate — see what one deposit becomes after years of compounding.
How it works
FV = PV × (1 + r ÷ m)^(m × n) · m = compounding periods per year
Future value projects what a single amount grows into once compound interest is applied. Each period the balance earns a return that is added back, so subsequent periods earn on a larger base — the snowball effect. More frequent compounding (monthly rather than annually) raises the result slightly because interest starts earning interest sooner.
Worked example
Investing $5,000 at 7% compounded annually for 10 years gives 5,000 × 1.07^10 = 5,000 × 1.9672 = $9,835.76, so the original stake nearly doubles. Switching to monthly compounding at the same 7% nominal rate lifts it a little higher because interest is credited twelve times a year.
Frequently asked questions
What is the difference between future value and compound interest?
They describe the same math. Future value is the ending balance; compound interest is the portion of that balance which is growth rather than your original deposit.
Does compounding frequency matter much?
At modest rates the difference between annual and monthly compounding is small but real, and it grows with the rate and time horizon. The nominal rate stays the same; more frequent compounding just credits interest sooner.
How does this differ from an investment calculator with contributions?
This grows one lump sum with no further deposits. If you add regular contributions, use a recurring-investment or SIP calculator, which grows each deposit for its own remaining time.
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Educational estimate, not investment advice.