Calculate present value, future value, periodic payments, interest rates, or number of periods for loans, investments, and annuities. This comprehensive TVM calculator handles ordinary annuities, annuities due, and lump sum calculations for financial planning and analysis.
Lump Sum:
PV = FV / (1 + i)^n
Annuity:
PV = PMT × [(1 - (1 + i)^-n) / i]
Lump Sum:
FV = PV × (1 + i)^n
Annuity:
FV = PMT × [((1 + i)^n - 1) / i]
The time value of money principle states that money available today is worth more than the same amount in the future. This fundamental concept underpins all financial calculations and investment decisions.
Money today can be invested to earn returns
Future money typically has less purchasing power
Future payments carry uncertainty
People generally prefer immediate consumption
The rate charged or earned on borrowed or invested money
The rate used to determine present value of future cash flows
Choose what variable you want to solve for
Select ordinary annuity or annuity due
Fill in all required fields except the one you're calculating
Choose how often interest compounds
Click to see results with additional metrics
Calculate monthly payment for a $300,000 mortgage at 6% annual interest for 30 years:
How much to save monthly to have $1 million in 25 years at 8% annual return:
A perpetuity is an annuity with infinite periods.
PV = PMT / i
When payments grow at a constant rate g:
PV = PMT × [(1 - ((1+g)/(1+i))^n) / (i-g)]
Converts nominal rate to effective rate:
EAR = (1 + i/n)^n - 1
Always consider inflation when planning long-term investments
Compare investments using consistent time periods and compounding
Factor in taxes when calculating actual returns
Use conservative estimates for retirement planning
Regular contributions benefit from dollar-cost averaging