Time Value of Money Calculator
Professional TVM calculator that solves for PV, FV, PMT, I/Y, or N. Select what you want to calculate and enter the other 4 values.
TVM Variables
Enter 4 values to solve for FV
What do you want to calculate?
Select the variable you want to solve for, then enter the other 4 values
Lump sum at start (negative for outflow)
Recurring payment (negative for withdrawal)
Annual interest rate (%)
Total compounding periods
Settings
End of Period
TVM Result
Select what to calculate, enter 4 values, then click Calculate to solve for the 5th.
Understanding Time Value of Money
TVM Variables
- PV (Present Value): Current worth of future cash flows
- FV (Future Value): Value of investment at end of period
- PMT (Payment): Regular payment amount (annuity)
- I/Y (Interest Rate): Annual interest rate as percentage
- N (Periods): Total number of compounding periods
Key Concepts
- Compounding: Interest earned on interest
- Regular Contributions: Consistent periodic payments
- Time Horizon: Length of investment period
- Risk vs Return: Higher returns often mean higher risk
Example Calculation
Scenario: Retirement Savings
PV = $20,000 (initial investment)
PMT = -$2,000 (annual contribution)
I/Y = 6% (annual return)
N = 10 years
P/Y = C/Y = 1 (annual)
Result: FV ≈ $62,317
Sign Conventions
- Positive: Money received (inflows)
- Negative: Money paid out (outflows)
- PV: Negative if you invest money
- PMT: Negative if you make payments