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Free tool · Time value of money

Present value & future value calculator

What will a lump sum plus regular deposits grow to — and what is that worth in today’s dollars? Or flip it: how much do you need today to reach a goal? Regular deposits and inflation are built in.

Future value: what my money grows to. Present value: what I need today to hit a target.

Your numbers

Enter 0 for a lump sum only.

Deposits are made at the end of each period. The rate is an effective annual rate — a lump sum grows by exactly that percentage every year. Taxes and fees are not included.
Future value$0
    Balance (future dollars)Balance in today’s dollars
    Show year-by-year table
    YearDepositsGrowthBalanceIn today’s $

    Disclaimer

    Calculations are based on the information provided and are for illustrative and general information only. The rate of return and inflation rate used are the same for the entire period. Taxes and fees are not included. Results should not be considered specific financial or investment advice. Actual results may vary.

    The math

    What the calculator is doing

    • Future value of a lump sum: FV = PV × (1 + r)n, where r is the annual return and n the number of years.
    • Future value of regular deposits: each deposit compounds from the end of its period at the periodic rate p = (1 + r)1/m − 1, where m is deposits per year.
    • Present value: PV = FV ÷ (1 + r)n. With deposits, the calculator first works out what the deposits alone will grow to, then discounts the remaining gap back to today.
    • Inflation: today’s-dollar values divide the balance by (1 + i)n. The real return is (1 + r) ÷ (1 + i) − 1, not simply r − i.

    Where it applies

    Questions this answers

    • Saving for a down payment: “If I put $1,000 a month into my FHSA and TFSA at 4%, what will I have in 5 years — in today’s prices?”
    • Retirement target: “I want $1.5 million in today’s dollars at 65. With $800 a month going in, how much do I need invested now?”
    • Education savings: “Will $200 a month in an RESP cover tuition that is rising faster than inflation?”
    • Comparing offers: “Is a lump sum today worth more than payments over ten years?” Run the payments as deposits at your discount rate and compare the present values.

    Pair it with How long will my money last? to see the drawdown side of the same plan.

    Questions

    PV / FV FAQ

    What is the difference between present value and future value?
    Future value answers “what will my money grow to?” — a lump sum and regular deposits compounded forward at a rate of return. Present value answers the reverse: “what do I need today?” — a future amount discounted back at the same rate. They are the same formula run in opposite directions.
    How does the calculator treat regular deposits?
    Deposits are added at the end of each period (monthly, bi-weekly, weekly, quarterly or yearly) and earn the periodic rate from then on. The annual rate you enter is treated as an effective annual rate, so a lump sum grows by exactly that percentage each year regardless of the deposit frequency.
    Why show the result in today’s dollars?
    A million dollars in 25 years will not buy what a million dollars buys today. Dividing the future value by (1 + inflation)^years shows what that future balance is worth in today’s purchasing power, which is the number that tells you whether you are actually on track.
    Should I index my deposits to inflation?
    If you expect your income and savings to rise with the cost of living, yes — turn on the option so each year’s deposits grow by the inflation rate. If you want a conservative view, leave deposits flat.

    Which account should the deposits go into?

    FHSA, TFSA, RRSP, RESP or a corporation — the growth is the same, the tax is not. That decision is where a CPA adds the most value to a savings plan.

    Book a planning callPersonal tax planning