📈 FV = PV × (1+r)^n💰 Lump Sum & Annuity⚡ Compounding Frequency
Future Value Calculator
Find how much any investment or recurring contribution will grow to. Compare annual, quarterly, monthly and daily compounding.
Present Value
₹
Compounding Frequency
Periodic Payment
₹
Annuity Type & Frequency
Return Rate
1%30%
Time Period
1 yr40 yrs
Future Value
₹0
At the end of your investment period
Amount Invested
₹0
Total Interest / Gain
₹0
Wealth Multiple
0x
Annual Rate
12%
Years
15
Absolute Return
0%
📝 Formula
FV = PV × (1 + r/n)^(n×t)
Lump Sum: FV = PV × (1 + r/m)^(m×n) | m = compounding periods per year Annuity FV = PMT × [(1+r)^n − 1] / r | Annuity Due × (1 + r)
⚡ Impact of Compounding Frequency
Growth Over Years — Principal vs Interest
ⓘ Returns shown are pre-tax. Mutual fund returns are subject to capital gains tax (10% LTCG above ₹1L profit after 1yr for equity; 20% with indexation for debt). FD interest is fully taxable as income. Plan with post-tax returns for accurate goal planning.
Frequently Asked Questions
What is future value (FV)? +
Future Value is the worth of a current investment at a future date, assuming a given growth rate. FV = PV × (1 + r/m)^(m×n). Example: ₹5L at 12% for 15 years (monthly compounding) = ₹29.08L. FV helps you answer "how much will this investment be worth?"
How does compounding frequency affect FV? +
More frequent compounding = higher FV. ₹1L at 12% for 10 years: Annual = ₹3.11L, Quarterly = ₹3.26L, Monthly = ₹3.30L, Daily = ₹3.32L. The difference between annual and monthly compounding is about 6% over 10 years. Mutual funds and most market instruments effectively compound daily.
What is the future value of an annuity? +
Annuity FV = PMT × [(1+r)^n − 1] / r. This is the SIP formula. ₹10,000/month for 10 years at 12% = ₹10,000 × [(1.01)^120 − 1] / 0.01 = ₹23.00L. Your total investment = ₹12L. Gain = ₹11L. This compounding effect is the core of SIP wealth-building.
How is FV different from CAGR? +
FV is forward-looking: given PV and rate, find ending value. CAGR is backward-looking: given PV and FV, find the annual rate. FV = PV × (1+r)^n. CAGR = (FV/PV)^(1/n) − 1. Use FV to plan financial goals. Use CAGR to evaluate past performance.
What FV should I target for retirement? +
Inflate today's expenses to retirement year using 6-7% inflation. Apply 25x rule (4% withdrawal rate) to get corpus. Example: ₹6L annual expense today → ₹25.7L/year in 25 years at 6% inflation → ₹6.43Cr corpus. Use this calculator to find the investment path to reach that FV.
What is the difference between ordinary annuity and annuity due FV? +
Ordinary annuity: payments at end of period (most SIPs, loans). Annuity due: payments at start of period. Annuity due FV = Ordinary FV × (1 + r). At ₹10K/year for 10 years at 10%: Ordinary = ₹1.59L. Annuity due = ₹1.75L. Difference = one extra period of compounding per payment.