Finance Calculator
Time Value of Money Calculator (FV, PV, PMT, I/Y, N)
Use this finance calculator to solve for the future value (FV), periodic payment (PMT), interest rate (I/Y), number of periods (N), or present value (PV) for time value of money problems. Visualize value changes, see detailed schedules, and learn about core financial concepts.
Understanding the Time Value of Money
The time value of money (TVM) is the concept that a sum of money is worth more now than the same sum in the future due to its earning capacity. This fundamental principle of finance recognizes the risk and opportunity cost of tying up capital.
- Present Value (PV): What your money is worth today.
- Future Value (FV): What your money will grow to in the future with interest or periodic payments.
- Payment (PMT): The regular payment (deposit or withdrawal) per period.
- Interest Rate (I/Y): The rate of return or discount rate per period.
- Number of Periods (N): The number of times money is invested or payments are made.
Core Formulas Used
- Future Value: FV = PV × (1 + r)N + PMT × [((1 + r)N – 1) / r] (if PMT at end; if at beginning, multiply PMT term by (1+r))
- Present Value: PV = (FV / (1 + r)N) – PMT × [((1 + r)N – 1) / (r (1 + r)N)]
- Payment (PMT): Derived rearranging FV or PV formulas; see calculator logic.
Common Applications
- Evaluating investments, loans, and annuities
- Planning for retirement, savings, or payable debts
- Understanding loan amortization and payment schedules
- Business finance, capital budgeting, lease and credit card payment calculations
Why This Calculator?
- Enables accurate, fast calculation of money value over time
- Visualizes key figures and schedules, helping you make informed decisions
- Great for homework, professional use, and personal finance