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Money

Finance (TVM) calculator

Solve for N, I/Y, PV, PMT, or FV like a financial calculator. Learn the concept.

Time value of money

The idea that a dollar today is worth more than a dollar in the future because today's dollar can earn a return.

Money you have now can be invested and grow, so a promised future dollar is worth less than a dollar in hand. Every projection in the app, from savings growth to retirement withdrawals, rests on this idea.

FV = PV × (1 + r)^t and PV = FV ÷ (1 + r)^t

Example: At 5% a year, $1,000 today and $1,050 a year from now are worth the same. Left for ten years at 5%, the $1,000 grows to $1,628.89.

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Present value

What a future amount of money is worth today, after discounting it at a chosen rate of return.

Present value converts money you expect later into today's dollars so you can compare it fairly with money now. The higher the discount rate or the longer the wait, the smaller the present value.

PV = FV ÷ (1 + r)^t

Example: To have $50,000 in 10 years earning 4% a year, you need to set aside about $50,000 ÷ 1.04^10 ≈ $33,778 today.

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$

Annuity

A series of equal payments made at regular intervals, such as monthly contributions or yearly withdrawals.

In finance math, an annuity is any stream of level, regular payments. The same formulas value your monthly savings, a loan payment or a fixed retirement income stream.

PV = PMT × (1 − (1 + r)^−n) ÷ r ; FV = PMT × ((1 + r)^n − 1) ÷ r

Example: Funding $40,000 a year for 25 years at 5% takes about $563,758 today, even though the payments add up to $1,000,000, because the money still waiting keeps earning 5%.

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$

Money you pay out is negative; money you receive is positive.

FV (future value)
$100,133.64

Estimates only. Results are projections based on your assumptions and bundled data, not tax, legal, or investment advice.