---
title: "Future Value & Present Value Calculator | Interest Grove"
description: "Future value and present value of a lump sum plus regular payments, at the start or end of each period, with a year-by-year growth table."
url: https://interestgrove.bond/future-value-calculator/
---

# Future value & present value calculator

Grow money forward or discount it back. Enter a lump sum, a regular payment, a yearly rate and a term; choose whether payments come at the start or the end of each period.

## Growing forward, discounting back

Future value grows money forward: a starting amount compounds as amount × (1 + i)^n, and each payment compounds from the period it is made. Present value runs the same arithmetic backwards, turning future money into what it is worth today. As in spreadsheet FV and PV functions, i is the yearly rate divided by the periods a year and n is the number of periods.

FV = PV × (1 + i)^n + PMT × ((1 + i)^n − 1) ÷ i × (1 + i × t)t = 1 when payments come at the start of each period (an annuity due), 0 at the end (an ordinary annuity).

Payments at the start of a period get one extra period of growth, so they end up worth (1 + i) times as much as the same payments at the end.

Example: $1,000 now plus $100 at the end of each month for 10 years at 5% a year (0.4167% a month) grows to $17,175.24, of which $4,175.24 is growth. Microsoft's PV example, $500 a month for 20 years at 8%, is worth $59,777.15 today: try it with the example button.

## Sources

- Microsoft Support, [FV function](https://support.microsoft.com/en-us/office/fv-function-2eef9f44-a084-4c61-bdd8-4fe4bb1b71b3) and [PV function](https://support.microsoft.com/en-us/office/pv-function-23879d31-0e02-4321-be01-da16e8168cbd): the rate-per-period convention, payment timing (type 0 or 1) and the worked examples this calculator is tested against.
- Investor.gov (U.S. Securities and Exchange Commission): glossary entries for [future value](https://www.investor.gov/introduction-investing/investing-basics/glossary/future-value) and [compound interest](https://www.investor.gov/introduction-investing/investing-basics/glossary/compound-interest), and its [compound interest calculator](https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator).

## Questions

**What rate should I use?**

Any rate you want to test: it is an assumption, not a forecast. For present value it is the return you could earn elsewhere, which is why it is called the discount rate.

**Why does the growth part get bigger every year?**

Growth is earned on earlier growth as well as on what was paid in. That is compound interest.

**Are taxes and fees included?**

No. Use a rate after fees if you want to include them; tax depends on your situation and is left out.