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.
Result
- Present value$10,000.00
- Nominal future value$19,671.51
- Real (inflation-adjusted) value$14,637.45
- Total nominal growth$9,671.51
- Real annual rate3.883%
- Purchasing power retained74.4%
Step-by-step
- Nominal FV = PV·(1+r)^t = $10,000.00 × (1+0.07)^10 = $19,671.51.
- Adjust for inflation: real value = FV ÷ (1+i)^t = $19,671.51 ÷ (1+0.03)^10 = $14,637.45.
- Equivalent real annual rate = (1+r)/(1+i) − 1 = 3.883%.
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) − 1Money compounds at the nominal rate; inflation discounts the result back into today's purchasing power. The Fisher equation gives the equivalent real growth rate.
Worked examples
- Inputs:
- pv=10000, rate=7, inflation=3, years=10
- Output:
- nominal $19,671.51, real $14,637.45
- Inputs:
- pv=10000, rate=5, inflation=2, years=20
- Output:
- nominal $26,532.98, real $17,861
- 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.