How to Calculate the Future Value of an
Investment with Cash Flows

This tutorial guides you through the steps to calculate the future value of a series of regular investments.

All users should begin with the more detailed first tutorial to understand the Ultimate Financial Calculator (UFC) and its basic concepts and settings.

Broadly speaking, investment and savings cash flows fall into one of four groups with the following characteristics:

• A series of deposits followed by one withdrawal. A defined savings plan to reach a specific goal can typically be represented by this cash flow pattern (this tutorial).
• One initial deposit followed by a series of withdrawals. An annuity purchased for retirement is typically represented by this pattern.
• Multiple investments and multiple withdrawals. A common example is a college or retirement plan.
• A completely irregular pattern: multiple deposits with intermittent withdrawals. Stock, bond, or mutual fund investing is representative of this pattern.

The Ultimate Financial Calculator can handle any of these cash flow types, including variations.

To create a savings plan schedule with an unknown withdrawal amount, assuming 10 years of quarterly deposits, follow these steps:

1. Set Schedule Type to Savings.
   • Or click the New button to clear any previous entries.
2. Set initial values for an investment cash flow in the header section.
   • Both the interest rate and compounding method can be changed later in the schedule (see Tutorial 4).
   1. For Initial Interest Rate, enter 4.5 (representing 4.5%).
   2. Set Initial Compounding to Daily.
   3. For Calculation Method, select Normal.
3. Click the first row of the cash flow grid.
   1. Set Series to Deposit.
   2. Set the Date to 04/01/2016  (MM/DD/YYYY).
   3. Set the Amount to 350.00.
   4. Set # Periods to 40.
   5. Set Frequency to Quarterly.

4. Create a Withdrawal series in the second row to calculate the future investment value.
   • This tells the calculator to compute the final withdrawal amount.
   • You may set the withdrawal date later than the last deposit date if you want the withdrawal to occur after the investment period ends.
   1. Click the second grid row. For Series, select Withdrawal.
   2. The Date will already be set to 04/01/2026.
   3. Set the Amount to Unknown by typing U. See Fig. 1.
   4. Set # Periods to 1.
   • You are now ready to calculate the unknown value.
   • Your screen should look like this:

5. Calculate — Click the Calculate button at the top of the calculator.
   • The word Unknown will be replaced with the future value as of 04/01/2026. Assuming all default settings are used and the example is followed exactly, the result will be $17,843.48. See Fig. 2.
   • Thus, the depositor will have $17,843.48 available for withdrawal after depositing $350.00 quarterly for ten years, assuming a 4.5% nominal annual interest rate, daily compounding, a Normal compute method, and a 360-day year.

6. Click the Schedule button to view the investment cash flow schedule.
7. Click the Charts button to view three automatically generated charts that visualize your savings plan. No additional setup is required.

Variations: If you know the regular deposit amount, the withdrawal amount, and the date funds will be available, you can set the Initial Interest Rate to Unknown to calculate the nominal annual interest rate required.

You can also solve for # Periods. Set # Periods in the first row to Unknown to calculate how many periods are needed to reach your investment goal. Important: If the withdrawal row is dated earlier than the final deposit date (based on the number of periods needed), the calculator will still allow the withdrawal, but the balance will go negative. In effect, the ongoing deposits are repaying a loan until the balance reaches zero.

Note: You can apply techniques from other tutorials here as well. You may adjust deposit amounts, the assumed interest rate, deposit dates, and even account for inflation or skipped deposits (see Cash Flow Options).

There are dozens of financial calculators available on this site. If the Ultimate Financial Calculator doesn’t meet your needs, or if you have a question about how to set up a mortgage, loan, or investment calculation, please ask in the comment section at the bottom of any calculator page.

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