Future Value of Savings (FV)

All versionsFV

The FV function projects what regular savings will grow to — a monthly retirement contribution, a recurring deposit — given an interest rate and a number of periods. It’s compound growth, built in.

Quick formula: for a monthly deposit in B3, annual rate in B1, and years in B2:

=FV(B1/12, B2*12, -B3)

As with PMT, convert the rate and periods to months. The deposit is entered negative (cash going out) so the result comes back positive.

Functions used (tap for the full reference guide):

FV PMT

The example

Saving $200 a month for 10 years at 5% annual interest.

	A	B
1	Annual rate	5%
2	Years	10
3	Monthly deposit	$200
4	Future value	$31,056

The formula

What the savings grow to:

=FV(B1/12, B2*12, -B3) // 5%/12, 120 deposits of $200 → ~$31,056

How it works

FV compounds each deposit forward to the end date:

Rate per period: B1/12 — the monthly interest rate.
Number of periods: B2*12 — 120 monthly deposits over 10 years.
Payment: -B3 — the $200 monthly deposit, negative because it’s money you put in.
FV returns ~$31,056: the $24,000 you contributed plus ~$7,000 of compound interest.

Start with a lump sum too? Add it as the 4th argument (present value), also negative: =FV(B1/12, B2*12, -B3, -1000) begins with $1,000 already saved.

Try it: interactive demo

Live demo

Adjust the plan; see the projected balance.

Monthly deposit

Annual rate %

Years

Future value:

Variations

With a starting balance

Include money already saved as the 4th argument:

=FV(B1/12, B2*12, -B3, -1000)

Deposits at the start of each month

Set the 5th argument to 1:

=FV(B1/12, B2*12, -B3, 0, 1)

Lump sum only, no deposits

Leave the payment 0 and supply a present value:

=FV(B1/12, B2*12, 0, -5000)

Pitfalls & errors

Sign confusion. Enter deposits as negative so FV returns a positive balance. If your result is negative, flip the sign on the payment.

Rate/period mismatch. Monthly deposits need the rate /12 and periods ×12. Using the annual rate with monthly periods massively overstates the result.

FV assumes a constant rate. Real returns vary; FV is a projection at one fixed rate, not a guarantee.

Practice workbook

📊

Download the free Future Value of Savings (FV) practice workbook

The savings projector with live FV, the starting-balance and beginning-of-period variants, plus 4 challenges with answers. No sign-up required.

Frequently asked questions

How do I calculate future value in Excel?

Use =FV(rate/12, years*12, -payment) for monthly contributions, e.g. =FV(5%/12, 10*12, -200). Convert the annual rate and term to months and enter the payment as negative.

How do I include a starting amount in FV?

Add it as the fourth argument (present value), also negative: =FV(rate/12, years*12, -payment, -1000) begins with $1,000 already invested.

Why is my future value negative?

The payment sign is wrong. Enter deposits as negative numbers (cash out) so FV returns a positive ending balance.

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Function references: FV · PMT