Time Value of Money Calculator
Solve any time value of money problem by choosing which variable to calculate. Enter three of the four TVM variables (present value, future value, rate, periods) and this calculator will find the missing one.
The time value of money is the foundation of all finance. The core principle: a dollar today is worth more than a dollar tomorrow because today's dollar can be invested and earn a return. The basic TVM formula is FV = PV x (1 + r)^n, where PV is present value, FV is future value, r is the interest rate per period, and n is the number of periods.
This calculator lets you solve for any of the four variables. Want to know what $10,000 invested at 5% for 10 years will be worth? Solve for FV. Have a $50,000 goal and want to know what to invest today? Solve for PV. Know the start and end values but want to find the implied return? Solve for rate.
Compounding frequency matters. The same 5% annual rate compounds differently depending on whether interest is added annually, quarterly, monthly, or daily. More frequent compounding produces a higher effective annual rate. A 5% rate compounded monthly has an effective annual rate of about 5.12%.
The TVM concept extends beyond investments. It applies to loan payments, lease valuations, retirement planning, business valuations, and any situation where money changes value over time.