Time Value of Money (TVM) Calculator
Use this free Time Value of Money calculator to solve for Present Value, Future Value, Payment, Interest Rate or Time.
How to use this calculator
Enter values in four of the five main TVM fields and leave
the field you want to calculate blank.
If a value is known to be zero, enter 0 rather than leaving the field blank.
If a value is known to be zero, enter 0 rather than leaving the field blank.
TVM Information
The value of the money today.
The value of the money at the end of the period.
The recurring payment made each period.
Enter 0 if there are no recurring payments.
Enter the annual nominal interest or discount rate.
Enter 5 for 5%.
The total length of the investment, loan or calculation.
How often interest compounds and payments occur.
Most loans and ordinary savings calculations use
payments at the end of each period.
Important: Positive and negative numbers matter.
TVM calculations use a cash-flow convention:
Money you receive = positive
Money you pay or invest = negative
For example, if you invest $10,000 today and contribute $500 each month:
Present Value = -10000
Payment = -500
The resulting Future Value would normally be positive.
TVM calculations use a cash-flow convention:
Money you receive = positive
Money you pay or invest = negative
For example, if you invest $10,000 today and contribute $500 each month:
Present Value = -10000
Payment = -500
The resulting Future Value would normally be positive.
Time Value of Money Calculation
Generated using the free Bookkeeping Barn TVM Calculator
Calculation Summary
Disclaimer:
This calculation was generated using a free educational
calculator provided by Bookkeeping Barn.
Results are estimates based entirely on the information entered by the user and the mathematical assumptions used by this calculator. Bookkeeping Barn does not verify the completeness, accuracy or suitability of the information entered and makes no representation or warranty regarding the accuracy or applicability of the resulting calculation.
This tool is provided for general informational and educational purposes only and is not a substitute for professional accounting, bookkeeping, tax, investment, financial or legal advice. Actual investment returns, borrowing costs, lender calculations and financial results may differ.
Users remain solely responsible for reviewing the calculation and determining whether it is appropriate for their intended purpose. Bookkeeping Barn assumes no responsibility or liability for errors, omissions, decisions, losses or consequences arising from the use of this calculator.
Results are estimates based entirely on the information entered by the user and the mathematical assumptions used by this calculator. Bookkeeping Barn does not verify the completeness, accuracy or suitability of the information entered and makes no representation or warranty regarding the accuracy or applicability of the resulting calculation.
This tool is provided for general informational and educational purposes only and is not a substitute for professional accounting, bookkeeping, tax, investment, financial or legal advice. Actual investment returns, borrowing costs, lender calculations and financial results may differ.
Users remain solely responsible for reviewing the calculation and determining whether it is appropriate for their intended purpose. Bookkeeping Barn assumes no responsibility or liability for errors, omissions, decisions, losses or consequences arising from the use of this calculator.
Use your browser's print window to print the calculation or choose "Save as PDF".
What Do the TVM Fields Mean?
Present Value (PV)
Present Value is what an amount of money is worth today.
For example, if you invest $10,000 today, the Present Value
of the investment is $10,000.
Future Value (FV)
Future Value is what the money will be worth at a future date
after accounting for interest, investment growth and recurring
payments.
Payment (PMT)
Payment is the recurring amount paid or received during each
period.
Examples include a monthly loan payment or monthly investment
contribution.
If there are no recurring payments, enter 0.
Annual Interest Rate
This is the annual nominal interest or discount rate used in
the calculation.
Enter the percentage as a normal number.
For example, enter 5 for 5%.
Number of Years
This is the total length of time covered by the calculation.
The calculator converts the number of years into the appropriate
number of periods based on the selected frequency.
Payments / Compounding Per Year
This tells the calculator how many calculation periods occur
during one year.
Monthly uses 12 periods per year, quarterly uses 4,
and annual calculations use 1.
Beginning vs. End of Period Payments
An ordinary annuity assumes payments are made
at the end of each period.
An annuity due assumes payments are made at
the beginning of each period.
Payments made at the beginning of a period have an additional
period in which to earn or incur interest.
What Is the Time Value of Money?
The Time Value of Money is the financial principle that money available today is generally worth more than the same amount received in the future because money available today can be invested or otherwise used to earn a return.
TVM calculations are commonly used for loans, investments, retirement savings, business decisions, financing and other situations involving money received or paid at different points in time.