Finance Calculator (TVM)
Time Value of Money calculator. Calculate Future Value (FV) based on Present Value (PV), Payments (PMT), Rate, and Periods.
TVM Inputs
Result
$0.00
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Mastering the Time Value of Money (TVM)
The Time Value of Money is a core financial concept that states a sum of money is worth more now than the same sum will be at a future date due to its earning potential in the interim.
Key Components
- PV (Present Value): What the money is worth today.
- FV (Future Value): What the money will be worth at a specific point in the future.
- PMT (Payment): Regular contributions or withdrawals (e.g., mortgages, annuities).
- Rate: The annual interest or discount rate.
- N (Periods): The total number of compounding periods (years, months).
Real World Application
Financial advisors use TVM to determine if a specific investment is worth the cost, or to calculate how much you need to save today to reach a retirement goal of $1 million in 20 years.