Time Value of Money Calculator
Enter any 4 TVM variables — the calculator solves for the 5th: Present Value, Future Value, Rate, Periods, or Payment.
The time value of money is the core concept of finance: a dollar today is worth more than a dollar tomorrow. Use this calculator to solve any TVM problem — find PV, FV, rate, number of periods, or payment amount.
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TVM Calculator
Select what to solve for, enter the other 4 values
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Solve for
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Known values
$
$
%
periods
$
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Solution
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Formula used
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How it's calculated
TVM: the five variables
FV = PV × (1+r)^n + PMT × [(1+r)^n − 1]/r
Solve for PV: PV = [FV − PMT×((1+r)^n−1)/r] / (1+r)^n
Solve for r: Numerical (Newton-Raphson)
Solve for n: n = ln[(FV×r/PMT + 1)] / ln(1+r) — for no PV
or numerical solution when PV ≠ 0
Solve for PMT: PMT = [FV − PV×(1+r)^n] × r / [(1+r)^n−1]
Conventions:
PV is negative (cash outflow today)
FV is positive (cash inflow in future)
PMT is negative if payments are outflows
- 1Solving for—
- 2Computed result—
- PV (Present Value)
- The value today of a future sum of money, discounted at the interest rate.
- FV (Future Value)
- The value at a future date of today's money, grown at the interest rate.
- Rate (r)
- The interest rate per period. If periods are years, enter annual rate; monthly periods need monthly rate.
- N (periods)
- The number of time periods (years, months, quarters) over which the calculation applies.
- PMT
- A regular periodic payment — an annuity. Positive if received, negative if paid.
🔢 Worked example
What is $10,000 received in 5 years worth today at 6%? PV = $10,000 ÷ (1.06)^5 = $10,000 ÷ 1.338 ≈ $7,473 today.
Disclaimer: TVM calculations assume constant rates and regular payment timing. Real-world cash flows may be irregular — use NPV/IRR analysis for complex scenarios. Always confirm with an official source before deciding.
Frequently asked questions
What is the time value of money in financial management? (meaning and definition)
The definition used in financial management is short: a sum of money is worth more now than the same sum later, because money available today can be put to work and earn a return. The meaning in practice is that an amount without a date attached is an incomplete number. $1,000 today and $1,000 in ten years are two different quantities, and comparing them requires moving one of them along the timeline — discounting the future one back to today (present value) or compounding the present one forward (future value). This is why the concept sits under almost everything else in finance: net present value, bond pricing, loan instalments, lease-versus-buy decisions and capital budgeting are all applications of the same one-line idea. This page is the calculator for it: give it any three of present value, future value, rate and number of periods, and it solves for the fourth. With $10,000 due in 10 periods at 8.00%, the present value it returns is $4,631.93.
Do I still need a time value of money table?
Not to get the answer, though it helps to know what those tables were. A time value of money table lists precomputed factors for each combination of rate and number of periods — a present value factor, a future value factor, and the annuity versions of both — so that before calculators you could multiply your amount by the factor from the row and column of your problem. The factor is just the arithmetic this page performs: the present value factor is 1 ÷ (1+r)^n and the future value factor is (1+r)^n. You can read any factor straight off this calculator by using an amount of 1, or by dividing the result by the amount you entered: $10,000 in 10 periods at 8.00% gives $4,631.93, so the 10-period, 8% present value factor is 0.4632, which is exactly the number the printed table would give you. The advantage here is that you are not restricted to the rows and columns someone chose to print: any rate and any number of periods works.
What is the time value of money?
The principle that money available today is worth more than the same amount in the future — because today's money can be invested and earn returns. It underlies virtually all financial calculations: loan payments, investment values, retirement planning, and bond pricing.
What is present value?
Present value (PV) is today's value of money to be received in the future, discounted at the interest rate. PV = FV ÷ (1+r)^n. Example: $10,000 in 10 years at 8%/yr is worth PV = $10,000 ÷ 1.08^10 = $4,632 today.
What is an annuity?
An annuity (PMT) is a series of equal payments at regular intervals — like monthly mortgage payments, pension payments, or regular investment contributions. The TVM formula can solve for any annuity variable.
Are my results saved? Do I need an account?
No account or sign-up needed. Every calculation is saved automatically in your own browser, and you can also pin a result with the save button. Nothing is sent to any server: the data stays on your device and can be erased at any time with the clear button.
How do I track my progress over time?
From the fourth entry onward a “View comparison chart” button appears, opening a line chart with every entry in time order plus an indicator panel: total change, average per entry, lowest and highest value and the period covered. You can also export the history as CSV.
About this calculator
This time value of money calculator solves any TVM problem — present value (PV), future value (FV), interest rate, number of periods, or payment amount — by leaving one field blank and letting the tool find it. It puts to work the core idea of finance: a dollar today is worth more than a dollar in the future.
Use it to see what a future sum is worth today, how much a deposit grows over time, or what rate connects two amounts across a span of years. Reading PV and FV side by side makes the cost of waiting — and the reward of investing early — concrete rather than abstract.