How It Works

The FV (Future Value) function calculates what your money will be worth in the future, accounting for compound interest and regular contributions. This is the foundation of retirement planning and savings projections.

Syntax

=FV(rate, nper, pmt, [pv], [type])

rate: Interest rate per period (annual ÷ 12 for monthly)
nper: Number of periods (years × 12 for monthly)
pmt: Payment per period (negative for deposits)
pv: Present value/starting amount (negative for deposits)
type: When deposits are made (0=end, 1=beginning)

Example

Retirement Savings:

Starting Amount: $10,000
Monthly Contribution: $500
Annual Return: 7%
Time Horizon: 30 years

Formula: =FV(7%/12, 360, -500, -10000)

Result: $632,408.10

Your $10,000 plus $180,000 in contributions grows to over $632,000!

Common Scenarios

Emergency Fund Growth

$1,000 starting, $200/month, 4% APY savings account, 3 years:

=FV(4%/12, 36, -200, -1000)

Result: $8,651

College Savings (529 Plan)

$5,000 starting, $300/month, 6% return, 18 years:

=FV(6%/12, 216, -300, -5000)

Result: $131,572

Simple Growth (No Contributions)

$50,000 invested at 8% for 20 years:

=FV(8%/12, 240, 0, -50000)

Result: $244,692

Variations

Annual Compounding

For investments that compound annually:

=FV(rate, years, -annual_contribution, -initial)

Show Breakdown

Calculate how much is contributions vs. growth:

Contributions: =monthly * months + initial
Growth: =FV(...) - contributions

Pro Tips

Use negative numbers for money you’re putting IN
Compare scenarios by changing the rate to see impact of different returns
Account for inflation by using real return (nominal - inflation)
Monthly vs. annual - monthly compounding gives slightly higher results

The Power of Time

Starting	Monthly	Years	@7% Return
$0	$500	10	$86,542
$0	$500	20	$260,464
$0	$500	30	$606,438
$0	$500	40	$1,318,941

Starting early is the most powerful factor in building wealth.