Calculate the future value of an investment with regular monthly contributions and compound interest.
This calculator computes the future value of an investment — how much a current lump sum (present value) combined with regular monthly contributions will be worth at the end of a specified period, given an assumed annual interest or return rate with monthly compounding. It is a core tool in financial planning for projecting how a savings or investment plan accumulates over time.
This calculator compounds monthly: each month, the current balance grows by the monthly interest rate, and then the monthly contribution is added. This means interest is earned not only on the original principal but also on all accumulated interest and contributions from prior months.
Formula: Each month: Balance = Balance × (1 + Monthly Rate) + Monthly Contribution, where Monthly Rate = Annual Rate ÷ 12, repeated over Years × 12 months. Total Contributions = Present Value + (Monthly Contribution × Months). Growth = Future Value − Total Contributions.
Example: Starting with A$5,000 and contributing A$200 per month at a 5% annual rate (example rate — enter your expected rate) over 10 years, the investment grows to about A$39,291.50. Of this, A$29,000 represents total contributions and roughly A$10,291.50 is growth from compounding. (Note: this example is for illustration purposes only — actual rates and returns vary.)
Future value calculations underpin many planning decisions for Australian investors: projecting how a superannuation balance will grow to retirement, estimating how long it will take to save a home deposit, or modelling the growth of a share portfolio over a defined horizon. When using a future value calculator for superannuation planning, keep in mind that returns within a super fund are taxed at a concessional 15% (or 0% in the pension phase), so the effective compounding rate inside super is higher after tax than a comparable investment outside super at your marginal tax rate — see our Superannuation Calculator for super-specific projections. The interest rates and return rates available to Australians vary significantly by asset class and product: high-interest savings accounts and term deposits currently offer rates in the range of 4-5% p.a. (example rates — check your specific product), while diversified growth-oriented superannuation or investment funds have delivered long-run nominal returns of 7-9% p.a. historically (though with significant year-to-year variability). The Reserve Bank of Australia (RBA) sets the cash rate, which influences the interest rates available on savings products — rates change over time and should be verified against current advertised rates before making decisions.
Future value (FV) answers "how much will a current amount be worth in the future?" — it projects a present value forward through compounding. Present value (PV) is the inverse: "how much is a future amount worth today?" — it discounts a future amount back to its current worth using an assumed rate. Both are two sides of the same time-value-of-money calculation. Use this calculator for FV; see our Present Value Calculator for PV.
More frequent compounding produces a higher future value than less frequent compounding at the same annual rate, because interest is credited and begins earning its own interest sooner. This calculator uses monthly compounding, which is typical for savings accounts and many superannuation funds. Daily compounding (used by some savings accounts) will produce a slightly higher result; annual compounding slightly lower. The difference between monthly and daily compounding is small in practice.
For savings accounts, use the actual interest rate the account will pay on your balance tier — this may be a "bonus rate" (applying only if you meet conditions) or a "base rate" (guaranteed). There is no comparison rate for savings accounts (comparison rates apply to loan products under the NCCP Act). Check the account's product disclosure statement or the bank's website for the current applicable rate.
No — this calculator shows gross (pre-tax) future values. In Australia, interest earned on savings accounts and investment returns are generally taxable at your marginal income tax rate (plus the Medicare levy). For investments held more than 12 months, a 50% CGT discount applies to capital gains. After-tax future values will be lower than the gross projections shown here. For superannuation, a lower 15% tax rate on earnings makes after-tax growth significantly closer to the gross figure.
This calculator assumes a fixed monthly contribution throughout the period. If you plan to increase contributions over time (for example, as your income grows), run the calculation in stages: project the future value for the first period, then use that as the new present value for the next period with a higher contribution. Alternatively, use a conservative average monthly contribution to get an approximate figure.
All three calculators use the same underlying monthly compounding formula and produce the same result given the same inputs. The differences are framing: the Future Value Calculator uses "present value" terminology, which aligns with formal finance and time-value-of-money conventions; the Investment Calculator uses "initial investment" framing; and the Compound Interest Calculator is framed around savings account interest. Choose whichever framing fits your purpose.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial advice. The interest rate used is an example only — actual rates on savings accounts and investment returns vary, change over time, and are not guaranteed. This calculator shows gross (pre-tax) figures and does not account for inflation, fees, or tax on earnings. Consult a qualified financial adviser for advice specific to your financial goals and circumstances.