Time Value of Money Calculator
Solve for any variable in the TVM equation: Present Value, Future Value, Payment, Interest Rate, or Number of Periods.
Current amount
Amount added/paid each period
What is Time Value of Money?
The Time Value of Money (TVM) is the concept that money available today is worth more than the same amount in the future due to its potential earning capacity. This core principle of finance holds that provided money can earn interest, any amount of money is worth more the sooner it is received.
TVM Formula
The general formula involves 5 variables:
- PV (Present Value): The current value of a future sum of money.
- FV (Future Value): The value of a current asset at a specified date in the future.
- PMT (Payment): The amount paid or received each period.
- r (Rate): The periodic interest rate.
- n (NPER): The number of periods.
Common Uses
You can use this calculator for:
- Retirement Planning: Calculate how much your savings will grow (FV) or how much to save monthly (PMT).
- Loan Payments: Determine monthly payments for a mortgage or car loan.
- Investment Goals: Find out how long it takes (NPER) to reach a savings goal.