Future value of beginning-period deposits: Why Beginning-of-Period Deposits Grow More
Deposits made at the start of each period earn one extra period of modeled growth compared with deposits at the end. That timing difference accumulates across a savings schedule.
Use the Future value of beginning-period deposits Calculator to enter your own figures and compare the result with the worked example below.
Future value of beginning-period deposits formula
FV = PMT × (((1+r)^n − 1) ÷ r) × (1+r)
Worked example
| Item | Example value |
|---|---|
| Deposit at beginning of period | 100 USD |
| Rate per period | 1 % |
| Number of periods | 12 periods |
| Future value of beginning-period deposits | 1,280.932804 USD |
These are illustrative inputs, not current prices, rates or recommended targets. Where a currency is shown, keep all comparable money amounts in the same currency; conversion examples identify the two sides separately.
How to interpret the result
Use a period rate consistent with the deposit frequency. This annuity-due calculation assumes equal deposits and a constant rate.
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Method and further reading
The example follows the FinMathly calculator method. For broader background, see Investor.gov: Introduction to investing. The background resource may use jurisdiction-specific terms; it does not replace the assumptions of this calculator.
Featured photograph: Pexels.