How to Use the Future Value Calculator

Choose investment type — Lumpsum (one-time), Monthly SIP, or both combined.
Enter your investment amount — Initial principal and/or monthly SIP amount.
Set expected return rate — FD: 6-7%, Mutual Funds: 10-15%, Equity: 12-18%.
Set investment period — Longer periods benefit more from compounding.
Choose compounding frequency — More frequent compounding yields higher returns.

Understanding Future Value

Future Value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The formula for future value with compound interest is: FV = PV x (1 + r/n)^(n*t), where PV is present value, r is annual interest rate, n is compounding frequency, and t is time in years.

Frequently Asked Questions

What is Future Value (FV)?

Future Value is the projected worth of an investment at a specific date in the future, assuming a certain rate of return. It accounts for the time value of money — ₹1 today is worth more than ₹1 tomorrow because it can earn interest.

What is the formula for Future Value?

For lumpsum: FV = PV × (1 + r/n)^(nt). For SIP: FV = PMT × [((1+r)^n - 1) / r] × (1+r). Where PV = present value, r = rate per period, n = compounding frequency, t = time, PMT = periodic payment.

How does compounding frequency affect Future Value?

More frequent compounding increases the future value. For example, ₹1 lakh at 12% for 10 years: Annual compounding = ₹3.11L, Monthly = ₹3.30L, Daily = ₹3.32L. The difference is more significant for larger amounts and longer periods.

What is the Rule of 72?

The Rule of 72 is a quick way to estimate how long it takes to double your money. Divide 72 by the annual return rate. At 12% returns, your money doubles in ~6 years (72/12). At 8%, it doubles in ~9 years.

What is CAGR?

CAGR (Compound Annual Growth Rate) is the average annual growth rate of an investment over a specified period longer than one year. It smooths out the volatility of returns and shows the effective rate of return.

How much will ₹1 lakh grow to in 20 years?

At 8% annual return: ₹4.66 lakh. At 12%: ₹9.65 lakh. At 15%: ₹16.37 lakh. The power of compounding makes a huge difference over long periods, which is why starting early is critical.

How to Use the Future Value Calculator

Choose investment type — Lumpsum (one-time), Monthly SIP, or both combined.

Enter your investment amount — Initial principal and/or monthly SIP amount.

Set expected return rate — FD: 6-7%, Mutual Funds: 10-15%, Equity: 12-18%.

Set investment period — Longer periods benefit more from compounding.

Choose compounding frequency — More frequent compounding yields higher returns.

Frequently Asked Questions

What is Future Value (FV)?

What is the formula for Future Value?

For lumpsum: FV = PV × (1 + r/n)^(nt). For SIP: FV = PMT × [((1+r)^n - 1) / r] × (1+r). Where PV = present value, r = rate per period, n = compounding frequency, t = time, PMT = periodic payment.

How does compounding frequency affect Future Value?

What is the Rule of 72?

What is CAGR?

How much will ₹1 lakh grow to in 20 years?

At 8% annual return: ₹4.66 lakh. At 12%: ₹9.65 lakh. At 15%: ₹16.37 lakh. The power of compounding makes a huge difference over long periods, which is why starting early is critical.

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Future Value Calculator - Lumpsum & SIP