Calculate the future value of an investment with regular monthly contributions and compound interest.
This calculator computes the future value of money — what a present amount, plus regular monthly contributions, will grow to after a given number of years at a given interest rate. It's a core time-value-of-money concept used in financial planning for goals such as education savings, a down payment, or retirement.
This calculator compounds your present value monthly: each month, interest is calculated on the current balance and added to it, and then your monthly contribution is added. After the number of years entered, the resulting balance is the future value.
Formula: Each month, Interest = Balance × (Annual Rate ÷ 12); Balance = Balance + Interest + Monthly Contribution. Future Value = Balance after (Years × 12) months. Growth = Future Value − Total Contributions (Present Value + sum of all monthly contributions).
Example: A present value of CA$5,000, with CA$200/month contributions at an expected 5% annual interest rate (example rate — enter a rate appropriate to your situation) over 10 years, gives total contributions of CA$29,000, growth of roughly CA$10,292, and a future value of about CA$39,292. (Note: this example is for illustration purposes only — actual results depend on actual rates achieved.)
The future value concept underlies most savings and investment planning — it's the basis for our Compound Interest Calculator, Savings Calculator, Investment Calculator, and Retirement Calculator, each applying the same underlying math to a specific goal. Future value is also the inverse of present value (see our Present Value Calculator): future value asks "what will this amount grow to?", while present value asks "what is a future amount worth today?" — both use the same compounding relationship, just solving for a different variable. In Canada, the account type you use for this future amount affects its real, after-tax value: a Registered Education Savings Plan (RESP) for education savings receives government grants (the Canada Education Savings Grant) that effectively boost your contributions beyond the amounts you enter here; a TFSA or RRSP shelters investment growth from tax (see our TFSA Calculator and RRSP Calculator); and a non-registered account is subject to ongoing tax on investment income. When projecting future value for a specific goal with a known target date — like a tuition payment or a home purchase — comparing the projected future value to your target amount can help you adjust your contributions or rate expectations accordingly.
Future value answers "what will this amount of money grow to by a future date, given a rate of return?" Present value answers the reverse question: "what is a future amount of money worth today, given the same rate?" Both use the same compounding relationship - future value projects forward, while present value discounts backward. See our Present Value Calculator for the reverse calculation.
They use the same underlying math (monthly compounding with regular contributions). The Future Value Calculator frames the result around the general time-value-of-money concept (present value growing to a future value), while the Compound Interest Calculator frames it around the interest/growth breakdown. Both will give the same numerical results for the same inputs.
You can use this calculator to project the growth of contributions and investment returns, but remember an RESP can also receive the Canada Education Savings Grant, which adds government money (generally 20% of contributions, up to annual and lifetime limits) on top of what you contribute - this calculator doesn't add grant money automatically, so the real future value of an RESP would be higher than shown here for the same out-of-pocket contributions.
Try entering your target future value as a goal and adjusting the monthly contribution amount until the calculated future value matches your target, given your present value, expected rate, and time horizon. This trial-and-error approach can help you find a contribution amount that fits your goal.
No, this calculator shows future value in nominal (not inflation-adjusted) dollars. If you want to understand the future value in terms of today's purchasing power, you could use a lower "real" interest rate (your expected return minus expected inflation) as a rough approximation.
For shorter-term goals (a few years or less), consider using a more conservative rate reflecting lower-risk options like a high-interest savings account or GIC, since you have less time to recover from market downturns. For longer-term goals, a higher rate reflecting a diversified investment portfolio may be appropriate, but remember actual returns vary and aren't guaranteed.
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 and does not represent a guaranteed or likely return for any investment - investment values can fall as well as rise. This calculator does not account for taxes, government grants (such as the Canada Education Savings Grant), or inflation. Always consult a qualified financial adviser for personalised financial planning.