Future Value of Money Calculator (with Inflation)

Project the future value of a present sum at a nominal growth rate, then adjust for inflation to show its real, inflation-adjusted value.

Inputs

Amount today.

Expected annual growth rate before inflation.

Expected annual inflation rate.

Investment horizon in years.

Result

Loading calculator…
—

How to use this calculator

  • Enter the present value (the amount you have today).
  • Enter the nominal annual return and the expected inflation rate.
  • Enter the number of years to project.
  • Compare the nominal future value with the real, inflation-adjusted value.

About this calculator

This calculator shows two futures for a sum of money: its nominal future value, which is what the account balance will literally read after growing at your assumed rate, and its real future value, which is what that balance will actually buy after inflation erodes the dollar. The nominal value compounds the present sum at the nominal annual return. The real value then discounts that future amount by the cumulative inflation over the same period, expressing it in today's purchasing power. The gap between the two is often startling over long horizons: money can more than double in nominal terms while gaining far less in real terms. The tool also reports the real (inflation-adjusted) rate of return via the Fisher relationship, which is the rate that actually matters for building wealth.

How it works — the formula

Nominal FV = PV · (1 + r)^t Real FV = Nominal FV ÷ (1 + i)^t Real rate = (1 + r) / (1 + i) − 1

Money compounds at the nominal rate; inflation discounts the result back into today's purchasing power. The Fisher equation gives the equivalent real growth rate.

Source: SEC Investor.gov — Compound Interest

Worked examples

Example 1
$10,000, 7% nominal, 3% inflation, 10 yr
Inputs:
pv=10000, rate=7, inflation=3, years=10
Output:
nominal $19,671.51, real $14,637.45
Example 2
$10,000, 5%, 2%, 20 yr
Inputs:
pv=10000, rate=5, inflation=2, years=20
Output:
nominal $26,532.98, real $17,861
Example 3
$5,000, 6%, 0%, 10 yr
Inputs:
pv=5000, rate=6, inflation=0, years=10
Output:
nominal = real = $8,954.24

Limitations

  • Constant annual rates and annual compounding assumed.
  • Pre-tax; ignores fees and taxes that lower real returns.
  • Single lump sum — no recurring contributions.

Projection for planning, not a guarantee of investment performance.

Frequently asked

What is the difference between nominal and real value?+
Nominal value is the raw future dollar amount after growth. Real value adjusts that amount for inflation, expressing it in today's purchasing power. If your money grows 7% but inflation is 3%, the nominal value rises faster than what it can actually buy.
How is the real rate of return calculated?+
By the Fisher equation: real rate = (1 + nominal rate) ÷ (1 + inflation) − 1. A 7% nominal return with 3% inflation gives a real rate of about 3.88%, not simply 4% — the exact formula divides rather than subtracts.
Why does inflation matter so much over long periods?+
Because it compounds. At 3% inflation, prices roughly double every 24 years, halving the purchasing power of a fixed sum. Over a multi-decade horizon, ignoring inflation dramatically overstates how wealthy a nominal figure makes you.
What inflation rate should I assume?+
Long-run US inflation has averaged around 2–3%. Central banks often target about 2%. Using a slightly higher figure builds in a margin of safety, but the right number depends on your country and time horizon.
Does this include contributions?+
No — it grows a single present sum. For regular deposits, use a future-value-of-an-annuity or compound-interest-with-contributions calculator, which sums the growth of each periodic payment.
Is the growth before or after taxes?+
The calculation is pre-tax. Investment gains may be taxed (on interest, dividends, or capital gains), which further reduces the real after-tax return. Adjust your assumed nominal rate downward to approximate after-tax growth.

Related calculators

Continuous Compounding Calculator
Compute the future value under continuous compounding (A = Pe^rt) and compare it with daily, monthly, and annual compounding.
Annuity Payment Calculator
Find the periodic payment of an annuity from its present value, interest rate, and number of periods — for both ordinary annuities and annuities-due.
Dividend Reinvestment (DRIP) Calculator
Project the growth of an investment when dividends are automatically reinvested, compared with taking dividends as cash.
Present Value Calculator
PV = FV / (1 + r)^n. The current worth of a future cash flow.
Future Value Calculator
FV = PV × (1 + r)^n. What today's amount grows to over time.
Annuity Payment Calculator
PMT = P · r / (1 − (1+r)^(−n)). Payment that fully amortizes a principal over n periods at rate r.

More tools you might like

Hand-picked tools that pair well with this one — same audience, same intent.

Annuity Payment Calculator
Calc

Find the periodic payment of an annuity from its present value, interest rate, and number of periods — for both ordinary annuities and annuities-due.

Continuous Compounding Calculator
Calc

Compute the future value under continuous compounding (A = Pe^rt) and compare it with daily, monthly, and annual compounding.

Dividend Reinvestment (DRIP) Calculator
Calc

Project the growth of an investment when dividends are automatically reinvested, compared with taking dividends as cash.

DRIP Future Value Calculator
Calc

Project the future value of a share holding when dividends are reinvested, from your initial shares, price, yield, and growth.

Future Value of Uneven Cash Flows Calculator
Calc

Compute the future value of a series of unequal cash flows compounded forward at a given rate to the end of the period.

Finance Calculator (TVM 5-Key Solver)
Finance

Time-value-of-money solver — solve for Present Value, Future Value, Payment, Periods, or Interest rate given the other four. The HP-12C and TI BA-II Plus core in a free browser tool.