Back to Calculators

Finance Calculator

Time Value of Money calculator - solve for any variable

Solve For

Variables

%
$
$
$

Advanced Settings

Calculated Future Value
—

Understanding Time Value of Money

What is Time Value of Money (TVM)?

The Time Value of Money is a fundamental financial concept that states money available today is worth more than the same amount in the future due to its potential earning capacity. This calculator helps you understand the relationship between these five key variables:

  • N: Number of payment periods (e.g., months, years)
  • I/Y: Annual interest rate (as a percentage)
  • PV: Present Value - the current value of future cash flows
  • PMT: Periodic payment amount (use negative for outflows)
  • FV: Future Value - the value at a future date

How to Use This Calculator

  1. Choose what to solve for: Select which variable you want to calculate (N, I/Y, PV, PMT, or FV)
  2. Enter known values: Input the values you know for the other four variables
  3. Set payment frequency: Specify how often payments occur (P/Y) and how often interest compounds (C/Y)
  4. Choose payment timing: Select whether payments occur at the beginning or end of each period
  5. View results: The calculator instantly computes the missing variable

Common Use Cases

Loan Payments: Calculate monthly payments (PMT) for a loan given the amount (PV), interest rate (I/Y), and term (N)
Retirement Savings: Determine how much to save monthly (PMT) to reach a retirement goal (FV)
Investment Growth: Find out what your investment will grow to (FV) given regular contributions (PMT) and expected return (I/Y)
Payoff Time: Calculate how long (N) it will take to pay off debt with fixed payments (PMT)
Return on Investment: Determine the effective interest rate (I/Y) you're earning on an investment

Sign Conventions

Financial calculators use a cash flow sign convention:

  • • Negative values represent money going out (payments, investments, loan amounts received)
  • • Positive values represent money coming in (receipts, loan payoffs, future values)

Important Notes

  • • Results are theoretical and based on the assumption of constant interest rates
  • • Actual financial products may have additional fees or varying interest rates
  • • This calculator works the same way as professional financial calculators (BA II Plus, HP 12CP)
  • • For loans, set FV to 0 (the loan will be fully paid off)
  • • For savings goals, set PV to 0 (starting from zero) or to your current balance