Finance Calculator (TVM)
Calculate Future Value (FV) with our Time Value of Money calculator. Perfect for annuities and savings.
Money today is worth more than money tomorrow. Use our **Finance Calculator** to solve complex Time Value of Money (TVM) problems and make smarter investment decisions.
TVM Inputs
Initial starting amount
Periodic contribution
Years or terms
Result
What is Finance Calculator (TVM)?
What is the Time Value of Money?
The **Time Value of Money (TVM)** is the core principle of finance. It states that a dollar in your hand today is worth *more* than a dollar promised to you in the future.
Why? Because you can invest that dollar today and earn interest. Or, inflation could eat away the value of the future dollar. This calculator helps you mathematically compare money across different time periods.
Who Should Use This?
- Students: Studying for Finance 101 or CFA exams.
- Investors: Calculating the future worth of a series of cash flows (Annuity).
- Retirees: Determining how long a nest egg will last with regular withdrawals.
Why This Tool is Useful
It unifies the 4 standard financial variables (PV, FV, Rate, Time). If you know any 3, you can solve for the 4th. (Note: This specific version focuses on solving for Future Value).
How to Use This Calculator
Enter your known variables:
- Present Value (PV): The money you have starting out (e.g., $1,000 in savings). Enter 0 if starting from scratch.
- Payment (PMT): Regular deposits you plan to make per period (e.g., $500/year).
- Annual Rate (%): The interest rate you expect to earn (e.g., 7% for stocks).
- Periods (N): The total number of time chunks (usually Years).
Pro Tip: Frequency Matters
This calculator assumes "Annual" compounding for simplicity. If you are compounding monthly, you would typically divide your Rate by 12 and multiply your Years by 12 to get the correct inputs.
Formula & Calculation
The Future Value formula dealing with both a Lump Sum (PV) and Regular Payments (PMT) is:
Where:
- FV = Future Value
- PV = Present Value (Starting Amount)
- PMT = Payment per period
- r = Interest Rate per period (decimal)
- n = Number of periods
Example Calculation
Example 1: The Saver's Bonus
Scenario: You inherit $5,000 (PV) and decide to add $200/year (PMT) to it for 10 years (N) at 6% (r).
FV from Payments = $2,636
Total Future Value = $11,590
Example 2: Zero Starting Cash
Scenario: You start with $0 (PV) but commit to saving $1,000/year (PMT) for 30 years (N) at 8% (r).
Interest Earned = $83,283
Total Future Value = $113,283
Insight: This is a classic "Annuity" calculation. Notice how the interest effectively quadruples your actual savings!
Reference Tables
Compounding Power Factor Table
Shows what $1 becomes after (n) years at different rates.
| Years (n) | 5% Factor | 7% Factor | 10% Factor |
|---|---|---|---|
| 10 Years | 1.63x | 1.97x | 2.59x |
| 20 Years | 2.65x | 3.87x | 6.72x |
| 30 Years | 4.32x | 7.61x | 17.45x |
Why use this calculator?
- Accuracy: Stop guessing. Use the math that banks use.
- Comparison: Compare two different investment opportunities instantly.
Frequently Asked Questions
Frequently Asked Questions
What is an Annuity?
In finance, an annuity is simply a series of equal payments made at regular intervals. Your mortgage payment is an annuity. A monthly $500 savings deposit is also an annuity.
Ordinary Annuity vs. Annuity Due?
An Ordinary Annuity assumes payments happen at the end of the period (like a mortgage). Annuity Due assumes payments happen at the start (like rent). This calculator uses Ordinary Annuity logic (payments at end).
What is the discount rate?
In TVM problems, the "Rate" is sometimes called the Discount Rate when we are looking backward (calculating Present Value from Future Value). It represents the opportunity cost of capital.
Key Terms & Definitions
Disclaimer: This tool is for educational purposes. Investment returns are never guaranteed.
Last Updated: January 2026