Future Value Calculator
See how much your savings will grow over time. Add monthly contributions to see the power of consistent investing — the strategy behind 401(k)s, UK ISAs, Canadian RRSPs, and Australian Superannuation.
Retirement Savings Vehicles by Country
The future value formula is the math behind every government-sponsored retirement savings plan worldwide. The main difference is how much tax you save:
| Country | Account | Annual Limit | Tax Benefit |
|---|---|---|---|
| 🇺🇸 US | 401(k) | $23,000 (2024) | Pre-tax contributions, tax-deferred growth |
| 🇺🇸 US | Roth IRA | $7,000 (2024) | After-tax contributions, tax-free growth |
| 🇬🇧 UK | ISA | £20,000/yr | After-tax contributions, all gains tax-free |
| 🇨🇦 CA | RRSP | 18% of earned income | Pre-tax contributions, tax-deferred growth |
| 🇨🇦 CA | TFSA | $7,000 (2024) | After-tax contributions, all gains tax-free |
| 🇦🇺 AU | Superannuation | 15% concessional tax | Employer 10.5%+ mandatory contribution |
Frequently Asked Questions
What is future value (FV)?
Future value is how much an investment made today will be worth at a future date, given a specific rate of return. FV = PV × (1 + r)^n for a lump sum. For regular contributions, the future value of an annuity formula is used — this is fundamental to retirement planning worldwide.
How does compounding frequency affect future value?
More frequent compounding produces higher future values at the same stated rate. Monthly compounding at 7% produces ~7.23% effective annual yield (APY/AER), versus exactly 7% for annual compounding. Over 30 years on $10,000, monthly compounding adds roughly $1,500 more than annual compounding.
How do UK ISAs compare to US 401(k)s for future value?
Both shelter investment growth from tax, but differently. A US 401(k) defers tax until withdrawal — you pay income tax on the way out. A UK ISA uses after-tax money, but all growth and withdrawals are completely tax-free. For the same contributions and returns, a Roth IRA or UK ISA typically produces higher after-tax future value than a Traditional 401(k) if your retirement tax rate is similar to your current rate.