Time Value of Money Calculator

Calculate present value, future value, interest rates, and time periods. Master the fundamental principle of finance.

✓ Present Value ✓ Future Value ✓ Interest Rates

Time Value of Money Calculator

Calculate

Basic Inputs

Current value of money

Annual discount/growth rate

Number of years

Advanced Options

For real value calculations

TVM Formulas

Core time value of money equations

Future Value:
FV = PV × (1 + r)^n
Present Value:
PV = FV / (1 + r)^n
Compound:
FV = PV × (1 + r/m)^(m×n)

Quick Examples

Investment Growth
$10,000 at 7% for 10 years
Retirement Planning
$50,000 at 6% for 30 years
Present Value
$100,000 future value calculation

Key Concepts

Time Value: Money today > money tomorrow
Compounding: Earning returns on returns
Discounting: Finding present value
Opportunity Cost: Alternative investment returns

Applications

💰 Investment Analysis: Compare opportunities
🏠 Loan Decisions: Evaluate borrowing costs
📊 Business Valuation: DCF analysis
🎯 Financial Planning: Goal setting
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Understanding Time Value of Money

The time value of money is the fundamental principle that money available today is worth more than the same amount in the future due to its earning potential.

  • Present Value: Current worth of future cash flows
  • Future Value: Value of current money at future date
  • Discount Rate: Interest rate used for calculations
  • Compounding: Growth accelerates over time

Real-World Applications

Investment Decisions

Compare different investment opportunities and expected returns.

Retirement Planning

Calculate how much to save today for future retirement needs.

Loan Analysis

Evaluate the true cost of borrowing and lending decisions.

Business Valuation

Value companies using discounted cash flow analysis.