Future value of annual deposits
Accumulate equal end-of-year deposits at an assumed annual return.
How this works
For equal end-of-year deposits C, annual return r expressed as a decimal, and n whole years, future value = C × [(1+r)^n − 1]/r. At a zero return, future value = C × n. The final deposit receives no growth because it is made at the end of the final year.
Example
The illustration may use different inputs from the reproducible default inputs listed below.
The defaults use ten $2,000 year-end deposits at 5%: $2,000 × [(1.05)^10 − 1]/0.05. With all reset-default inputs, future value of annual deposits: $25,155.79.
- End-of-year deposit ($)
- 2000
- Annual return (%)
- 5
- Whole years
- 10
- Future value of annual deposits
- $25,155.79
Scope and assumptions
No initial balance is included. Assumes fixed annual deposits and a constant nonnegative annual return, with no withdrawals, fees, taxes or losses. Beginning-of-year deposits require a different timing model; this is an illustration, not an investment forecast.
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